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.  

Tiffany Sues Costco Over Fake Engagement Rings

Photo: Tiffany & Co.

Tiffany & Co. filed a lawsuit against Costco yesterday (ironically) on Valentine's Day in Federal District Court in Manhattan over the sale of counterfeit engagement rings being sold under Tiffany's name. The suit claims Costco infringed on the jeweler's trademark, violated counterfeiting laws and asks for the profits Costco received from the sale of fake rings as well as punitive damages if $2 million per infringement. The suit also seeks to find out exactly how many customers were defrauded by purchasing the fake rings.

Tiffany discovered that Costco was selling fakes after a customer in Huntington Beach, CA complained to Tiffany November of last year that she was disappointed Tiffany allowed their rings to be sold at Costco. Tiffany then bought one of the rings and determined it was counterfeit since it didn't contain a microscopic laser inscription they put in all their diamonds. Further, the band did not contain the Tiffany & Co. engraving.