There is something almost absurd about the scene at the center of this case: a person standing in their kitchen, blender whirring, scooping vanilla-flavored powder into a morning shake because they are trying to be healthier. A federal lawsuit has been filed against one of the most reputable names in retail over this routine, which is carried out millions of times in American homes.
Seven consumers filed a proposed class action against Costco on July 7 in the U.S. District Court for the Western District of Washington, alleging that Orgain Organic Protein Powder sold through the warehouse chain contains lead, cadmium and arsenic at levels shoppers were never told about. The two flavors listed are Vanilla Bean and Creamy Chocolate Fudge, which are the ones found in warehouses from Seattle to San Antonio, piled on pallets next to the supplement section.
The complaint’s core grievance is less about chemistry than about language. The packaging for Orgain claims “quality ingredients and higher standards” and refers to the powder as “good clean fuel.” The plaintiffs, who are represented by the Seattle firm Hagens Berman, rely on independent testing to support their claim that those statements become deceptive if the product contains heavy metals.
Orgain was found to have 143% of the outlet’s level of concern for lead per serving in a 2025 Consumer Reports analysis of 23 protein products. The Clean Label Project, which tested 165 top-selling powders, found troubling results across the category. According to reports, one Texas plaintiff went so far as to pay for private laboratory testing.
Orgain has not stayed quiet. The company says its products are safe, noting that trace environmental substances naturally turn up in plant-based ingredients and that everything it sells complies with applicable food safety standards. That defense is worth sitting with, because it is not obviously wrong. Pea protein, rice and cacao pull minerals from soil, and heavy metals exist in soil almost everywhere. The real dispute may end up being about thresholds — what counts as a trace, who decides, and whether a shopper reading “clean” on a label deserves to know the numbers.
It’s difficult to ignore the fact that the FDA has not issued a recall and that, even days after the filing was made public, several Orgain varieties were still listed on Costco’s website, complete with positive reviews. The difference between the alarm in the courtroom and the normal course of business speaks for itself. The managing partner of the company, Steve Berman, framed the case around trust, contending that health-conscious customers depended on Costco’s quality assurance and that the retailer knew—or should have known—what independent labs were discovering.
In slow motion, the protein powder industry has already had to face this reality. In the US, supplements are subject to a peculiar regulatory framework; they are frequently tested less thoroughly than regular packaged foods and far less thoroughly than pharmaceuticals. As this goes on, it seems that the lawsuit is about more than just two types of powder; it’s about whether wellness marketing can continue to outperform the underlying science. A few years ago, baby food manufacturers experienced a similar storm, and the litigation changed the way that category discusses testing.
For Costco, the timing is awkward. The retailer is in the middle of an aggressive expansion, planning roughly 26 new warehouses in its 2026 fiscal year, and its brand rests almost entirely on the idea that membership buys vetted quality. The plaintiffs want damages, a jury trial, and required heavy-metal disclosures on packaging, but none of these things are guaranteed.
The accusations are still just that—allegations. Settlements frequently come quietly, and courts proceed slowly. However, the question has already changed for the shopper who will be at the blender tomorrow morning. It doesn’t matter if the shake tastes good anymore. It’s the potential contents of the scoop.
