Monday, July 15, 2013

Michael Kors Sues Costco Over Misleading Ad


Michael Kors Holdings has filed a lawsuit against Costco Wholesale Corp. in New York federal court on July 11th.  The lawsuit stems from an advertisement seen above which MK says falsely advertises MK bags for sale. The ad shows handbags with MK's signature pattern and gold logo.  The problem is, Costco has never been an authorized retailer of the designer.  Further, that MK handbags were never available for sale and MK alleges Costco used MK's handbag images to lure customers into the store.  According to WWD, the ad was distributed via emailed on April 16th to promote a selection of designer handbags for Mother's Day.  

The claim filed by MK states, "Costco is not, and never has been, an authorized dealer of Michael Kors handbags, and upon information and belief, Costco does not currently sell Michael Kors handbags." Further that, "To this date, consumers who arrive at Costco's web site through the bait-and-switch ad, or via Costco's main web site, will not find any Michael Kors handbags available for sale."

MK is seeking an injunction to enjoin Costco from advertising its products and also requests damages for loss profit, revenue Costco received as a result of diverting customers and punitive damages resulting from the alleged false ads.

This isn't the first time Costco has gotten into trouble.  High-end jeweler, Tiffany & Co. also filed a suit against the wholesaler for trademark infringement.

Read more
WWD (subscription red'q): Michael Kors Sues Costco

2 comments:

  1. Michael Kors products are poorly made and extremely overpriced. I wouldn't even pay the Costco price! i will rather buy from macys coupon

    ReplyDelete
  2. Love it!!!!!!!You know I′m a real fanatic of Michael Kors′ bags!!
    Where to buy it? http://www.jetsetmichaelkors.com/

    ReplyDelete