Seattle judge dismisses Costco tequila lawsuit, citing Mexico’s authority over the spirit
Oct 19, 2026, 12:39 PM
A sign hangs outside of Costco Wholesale store. (Photo: Scott Olson, Getty Images)
(Photo: Scott Olson, Getty Images)
A Seattle federal judge dismissed a class-action lawsuit Friday challenging the labeling of Costco’s Kirkland Signature tequila.
The lawsuit challenged Costco’s claim that the spirit was 100% agave tequila. Law firm Hagens Berman alleged that testing found significant levels of other types of alcohol in tequila labeled “100% DE AGAVE” and “100% AGAVE AZUL.” Costco denied the allegation.
The judge dismissed the lawsuit based on the doctrine of international comity, under which courts recognize the authority of other nations, according to Bloomberg. The ruling deferred to Mexico’s authority to regulate tequila.
Kirkland Signature’s tequila offerings received approval from Mexico’s Tequila Regulatory Council before reaching store shelves. The judge cited that approval in deciding not to adjudicate the labeling allegations in the U.S. court.
Hagens Berman has questioned the council’s independence and handling of such allegations.
“The nonprofit organization could be heavily influenced and controlled by the interests of leading tequila manufacturers,” the firm alleged in a 2025 release.
The dismissal does not establish whether the testing allegations were accurate; it reflects the court’s decision to defer to Mexico’s regulatory process.
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