Michael Kors is Suing Costco For Claiming They Sell His Bags

Michael Kors Sues Costco Over Handbag Ad

) However, in MichaelKors case, hes taking legal action against wholesaler Costco for advertising that they sell his labelshandbangs when, well, they dont. MORE: See a 29-Year-Old Michael Kors Posing With His Cat According to WWD , TheMichael KorsHolding Ltd.sued CostcoWholesaleCorp. in New York federal court, claiming the discount retailer falsely advertised that it sold Kors bags ine-mail blasts that it sent out in April before Mothers Day . The e-mailsreportedlyadvertised a selection of designer handbags starting at $99.99, and showcased a big picture of three purses, one of which was by Kors. Several other photos of the designers coveted bags were also featured in the advertisement, according to WWD. MORE: Rihanna Sues Topshop for $5 Million Over Graphic Tees Kors said the brand actively checked Costcos website and sent representatives to 19 stores, and were unable to find any proof that it sold Michael Kors handbags. Honestly, we think thats a pretty cheap trick on Costcos part to lure people onto its website and into its stores, and we dont blame Michael for taking legal action. WWD isreportingthat Kors is seeking an injunction barring Costco fromadvertisingits products, in addition to punitive damages and other unspecified costs. Tags:

Michael Kors Sues Costco Over Ads

Meryl, Susan Sarandon, Jodie Foster, she says. What has she learned from these older actresses? You have to pick your battles on set. You have to come learn more to work from a place of love. You have to stay hydrated when you have crying scenes. You have to go to college.

Handbags, watches fashion Michael Kors upbeat forecast

Vogue Italia's Slave Earrings Only two months later, Vogue Italia was slammed by many, including model Iman, for featuring "Slave Earrings" in their "Shop The Trend" section on their website. After the backlash, they changed the name to "Ethnic Earrings." Karlie Kloss' Nude Spread for Vogue Italia Then, in December of the same year, Vogue Italia decided to feature a photo shoot of it-model Karlie Kloss. The only problem was that the magazine was accused of photoshopping Kloss' already svelte figure even thinner. Whether it was Photoshop or not, the magazine decided to pul the image seen to the left off their website, along with the caption, "The (new) Body." Jay-Z's "Occupy All Streets" Shirts In support of the Occupy Wall Street Movement, Jay-Z's clothing line, Rocawear, released t-shirts in 2011 that said, "Occupy All Streets." People were quick to fire back with criticism insisting that Jay and his team were trying to monopolize off of the protestors since the company was not donating any of the proceeds to the cause. Marc Jacobs vs. Kidult This one is really unique. In May 2012, the Marc Jacobs store on Mercer Street in New York City discovered that street-artist Kidult had tagged the store with the word "ART". Jacobs responded by using the tag as inspiration for a $689 limited-edition t-shirt emblazoned with a photo of the tag. Gucci vs. Guess After years of battling over who gets the right to use the very similar logo design, in May 2012, a judge ruled that Guess owed Gucci $4.66 million dollars in damages from using its unauthorized trademark "G" logo.

Designer Michael Kors launched his brand 30 years ago as a luxury sportswear house. The company now makes pyramid-studded Saffiano leather handbags, watches and apparel worn by first lady Michelle Obama and celebrities including Jennifer Lopez. Michael Kors raised $944 million in its initial public offering just over a year ago, one of the biggest ever listings by a U.S. fashion company. The company now has a market capitalization of $12.6 billion. Kors, well-known for his work as a judge on the long-running television fashion show "Project Runway", held a 3.7 percent stake in the company as of December 31. At today's share price, this stake would be worth around $466 million. The company, which reported third-quarter results that comfortably beat Wall Street estimates, said the addition of new stores and the conversion of department store premises into branded "shop-in-shops" had drawn in more customers. A shop-in-shop is a mini-store within a larger department store that houses similar products.

Michael Kors Tries to Wipe Some Costco Mud Off Its Gold-Plated Brand

Any extremely limited quantity of Michael Kors handbags sold by Costco were certainly not offered for sale starting at $99, it reads. If it turns out that Kors bags were for sale at the store, it could complicate things for the brand. As a newer public company whose investors are paying for growth, Kors wants to cash in on the middle-market, but it needs to be careful not to tarnish its gold-plated, high-end brand. Since the company hit public markets in December 2011, Michael Kors has grown fast by buttressing its luxury collection (i.e., an $18,000 houndstooth mink wrap ) with its accessible luxury collection (i.e., a $275 tweed jacket ). Kors, which brought in $2.2 billion in revenue last year, can stretch its inventory from Bergdorf Goodman to Macys, and maybe even sell a few perfumes at Wal-Mart , but $99 bags at Costco is probably still too much of a risk to its high-end sales. Heres how Kors explains the dynamic in SEC filings : Taken together, our two primary collections target a broad customer base while retaining a premium luxury image. Kors is asking for an amount of damages to be determined at trial; attorneys fees; plus any revenue Costco gained from shoppers who went looking for Kors handbags and bought something else instead. Costco and Kors did not immediately return calls for comment this morning. (This is not the first suit of this kind that Costco has faced: Earlier this year , a Tiffany ( TIF ) subsidiary accused the retailer of selling engagement rings labeled Tiffany rings, even though the rings did not come from the famous jeweler. Costco countersued about a month later, claiming Tiffany has become a generic term for a certain type of engagement ring. The legal scrum is ongoing.) Meanwhile, Michael Kors is moving to take more direct control of its inventory.

Michael Kors Sues Costco for Alleged Bait-and-Switch Scheme

The lawsuit seeks a halt to the ads, along with unspecified damages. Michael Kors bags can range anywhere from $178 to $1,395, according to a search of handbags on the company website. Its Michael Kors decision if it wants to go down to a lower price point at a store where youre allowed to buy a jumbo-sized toilet paper before you buy its luxury bag, Business Insider reporter Laura Stampler told ABC News. So it doesnt necessarily want to make that leap down yet. Michael Kors sent its officials to 19 Costco stores and they found no products from the designer on shelves or the wholesalers website, according to the complaint. Costco declined to comment on the accusations. Michael Kors Holdings did not respond to ABC News request for comment. Founder Michael Kors now owns only a small percentage of the publicly traded company (NYSE: KORS). Tiffany & Co. took Costco to court earlier this year for allegedly misleading customers into thinking its signature diamond rings were from the iconic jewelry store. Costco countersued, saying the word tiffany is a generic term to describe a kind of ring setting.