Costco Sued Over Heavy Metal Contamination in Orgain Protein Powder

What happened

On July 7, Seattle law firm Hagens Berman filed a class action lawsuit in U.S. District Court for the Western District of Washington on behalf of seven plaintiffs from six states who purchased Orgain Organic Protein Powder (Vanilla Bean and Creamy Chocolate Fudge flavors) at Costco between 2019 and 2026. The suit alleges Costco sold the products with misleading marketing claims like 'the power of clean' and 'quality ingredients, higher standards' without disclosing the presence of toxic heavy metals. Independent laboratory testing commissioned by plaintiff Randall Hartwright and the legal team reportedly found detectable levels of lead, cadmium and arsenic across multiple product lots. According to the complaint, one Vanilla Bean sample contained 3.37 micrograms of lead per serving (exceeding California's safe limit of 0.5 micrograms by 674%) and 0.37 micrograms of arsenic per serving. Testing was corroborated by Microbac Laboratories, an ISO/IEC 17025-accredited facility. The lawsuit claims Costco neither required Orgain's manufacturer to test for heavy metals nor disclosed their presence to consumers at any point of sale, in stores or online.

Why it matters

The lawsuit exposes Costco to potential liability across multiple state consumer protection laws and could affect one of its popular private-label-adjacent offerings. Heavy metals like lead, cadmium and arsenic are neurotoxins with no known safe exposure level, according to health experts cited in the complaint. Lead has been linked to brain and kidney damage, anemia, high blood pressure, reproductive harm and cognitive deficits. Cadmium accumulates in the kidneys and liver for up to 38 years and has been linked to multiple cancers, Alzheimer's disease and ADHD in children. Arsenic is classified by the World Health Organization as one of '10 chemicals of major public concern.' The suit notes that cleaner alternatives exist at lower prices (some competitor products with no detectable heavy metals retail at $0.42 per ounce compared to Orgain's $0.79 per ounce), suggesting Costco may face pressure to reevaluate supplier standards or product positioning. One plaintiff, Sandi Morgan, reportedly purchased approximately 120 containers of the Creamy Chocolate Fudge flavor over several years, illustrating long-term customer loyalty that could translate into significant aggregate exposure if the class is certified.

Bigger picture

This lawsuit follows broader scrutiny of the protein powder industry. In January 2025, the Clean Label Project reported that 79% of organic protein powders exceeded California's Proposition 65 limits for lead, with 41% testing more than two times over that limit. In October 2025, Consumer Reports found that more than two-thirds of 23 protein products tested exceeded its level of concern for lead, with plant-based powders averaging lead levels nine times higher than dairy-based alternatives. Orgain Organic Plant-Based Protein Powder in Vanilla Bean was specifically rated 'Okay to eat occasionally' with lead levels at 143% of Consumer Reports' level of concern. Regulatory attention is increasing: California introduced Senate Bill 1033 in February 2026 requiring mandatory testing and public disclosure of heavy metals in protein products, and Texas launched an industry-wide investigation in June 2026 for potential violations of the Deceptive Trade Practices Act. The FDA acknowledges heavy metals occur naturally in soil and water and may be impossible to avoid completely, but has set limits for certain foods like baby formula. The lawsuit argues that protein powder free of heavy metals is achievable, citing 16 top-selling products with non-detectable levels of lead, cadmium, mercury and arsenic. Costco has also faced recent litigation over its rotisserie chicken labeling and alleged salmonella risk.

What to watch

Monitor whether Costco responds publicly or changes product labeling, supplier testing requirements or marketing language for Orgain or similar products. Watch for potential class certification, which would expand the case beyond the seven named plaintiffs. Track progress of California SB 1033 and the Texas Attorney General investigation, as these could set industry-wide precedents. Any settlements or judgments could influence how Costco and other retailers approach disclosure and testing standards for supplements and nutritional products. Investors should also watch for potential sales impact on Orgain products or broader private-label supplement lines.