Michael Kors is suing Costco for allegedly advertising the designer’s trendy handbags without actually being authorised to sell them.
“In a federal lawsuit filed in New York, Michael Kors accused Costco of a bait-and-switch scheme,” the Associated Press reported. “It says Costco advertised the bags as starting at $99, but didn’t actually have any to sell.”
Michael Kors handbags typically sell for hundreds of dollars. The label is the most searched-for fashion brand online, a testament to its immense popularity.
Tiffany & Co. also sued Costco for allegedly using its trademarked brand to sell diamond engagement rings.
Costco had stopped marketing the rings as “Tiffany,” but the jewelry brand wrote in a lawsuit that the damage was already done.
“There are ‘hundreds if not thousands of people who mistakenly believe they purchased and own a Tiffany engagement ring from Costco,” the New York Times reported, citing the lawsuit.
Costco hasn’t commented on either case.
The discount retailer has made a push to offer high-end brands lately. Costco has advertised products from Tumi luggage, Under Armour, Badgley Mischka and 7 For All Mankind.
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