COSTCO SUED (AGAIN!) BUT THIS TIME MICHAEL KORS

image credit: Mario Testino

NEW YORK, UNITES STATES
by REUTERS

 Michael Kors Holdings Ltd  has sued Costco Wholesalers, accusing the company of running a "bait-and-switch" false advertising scheme.According to a complaint filed by Kors, Costco has never been an authorized retailer of Michael Kors handbags, yet it has recently run advertisements implying that the handbags are available "starting at $99."
 
Kors also explained that Costco in April sent an email ad touting a selection of handbags for Mother's
Day "starting at $99.99," several of which were Michael Kors handbags featuring the company's trademarks. Michael Kors said that its representatives visited Costco's website and retail stores, and found none carried its handbags.

Kors, being an 'accessible luxury brand', is priced between $298 and $1,195.The point of Costco's ads is to "lure unsuspecting consumers away from bona fide Michael Kors retailers and into Costco stores," it was contained in the complaint.

Michael Kors is seeking an injuction to stop Costco from advertising its products, and is also seeking to recover lost profits plus punitive damages stemming from the alleged false ads.The lawsuit resembles one that Tiffany & Co brought against Costco in February. In that case, the jeweler accused Costco of using Tiffany's trademarks online and on at least one in-store ring display case.



Michael Kors (USA) Inc et al v. Costco Wholesale Corp, U.S. District Court, Southern District of New York, 13-04832
[case citation via reuters.com]