Michael Kors sues Costco claiming it illegally used images of its purses in ads

Mario Testino celebrates Kors collaboration





Egypt continues to be in a state of political paralysis following the ousting of Muslim Brotherhood leader Mohamed Morsi by the military. Adly Mansour, chief justice of the Supreme Constitutional Court, was sworn in as the interim head of state in a ceremony in Cairo on the morning of July 4. - [Spencer Platt/Getty Images] Ramadan8 Egyptians shop in a market on the eve of Ramadan, the sacred holy month for Muslims where many will fast from sun-up to sun-down, on July 9, 2013 in Cairo, Egypt. Egypt continues to be in a state of political paralysis following the ousting of Muslim Brotherhood leader Mohamed Morsi by the military. Adly Mansour, chief justice of the Supreme Constitutional Court, was sworn in as the interim head of state in a ceremony in Cairo on the morning of July 4. - [Spencer Platt/Getty Images] Ramadan9 A Palestinian fixes lights in an illuminated street outside the Al-Aqsa mosque compound in the old city of Jerusalem during the Muslim fasting month of Ramadan on July 9, 2013. During Ramadan, one of the five main religious obligations under Islam, Muslims are required to abstain from food and from drinking liquids, smoking and having sex from dawn until dusk. - [AHMAD GHARABLI/AFP/Getty Images] Ramadan10 A Palestinian child poses with a star as people arrive to attend the evening prayer during the Muslim fasting month of Ramadan at the Al-Aqsa mosque compound in the old city of Jerusalem on July 9, 2013. During Ramadan, one of the five main religious obligations under Islam, Muslims are required to abstain from food and from drinking liquids, smoking and having sex from dawn until dusk. - [AHMAD GHARABLI/AFP/Getty Images] Ramadan11 A pastry chef holds a tray of Arabic sweets at his bakery in Gaza City on the eve of the start of the holy Muslim fasting month of Ramadan, on July 9, 2013.





Michael Kors sues Costco for false advertising of his handbags



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Michael Kors Sues Costco Over 'Bait-And-Switch' Ad



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Michael Kors (KORS) is on the Right Course





With US consumer confidence recently hitting six-year highs, consumers are loosening their purse strings and are likely to indulge in accessible luxuries from retailers like Michael Kors. Positive employment data is another bullish sign for the consumer retail market that bodes well for the Company. Market IQ pro metrics give KORS a Neutral+ rating. Market IQ characterizes KORS as high Quality but low Value stock (see below). The above Quality - Value chart consists of the following companies: Michael Kors (NASDAQ:KORS) , Fifth and Pacific Companies(NYSE:FNP) , Coach Inc. (NYSE:COH) , V.F. Corporation (NYSE:VFC) , and Ralph Lauren Corporation (NYSE:RL) .









According to a complaint filed in Manhattan federal court, Costco has never been an authorized retailer of Michael Kors handbags, yet it has recently run advertisements nationwide falsely suggesting that the handbags are available "starting at $99." In one example cited, 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. But Michael Kors, which also makes shoes, watches and jewelry, said that its representatives visited Costco's website and 19 retail stores, and found none carried its handbags. On the Michael Kors website on Friday, most full-size women's handbags were 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," the complaint said. RELATED: MICHAEL KORS LAUNCHING BEAUTY LINE "When a consumer 'takes the bait' and seeks to purchase Michael Kors handbags at a Costco store or on Costco's website, no such handbags are available," it added. Michael Kors is seeking a court order to stop Costco from advertising its products, and to recoup profits plus punitive damages stemming from the alleged false ads.





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in New York, accusing the retailer of utilizing the fashion labels' trademarks to perpetrate a national bait-and-switch advertising campaign that falsely implied customers would be able to buy cheap Michael Kors handbags at Costco. Costco, which is not an authorized Michael Kors retailer, sent an email advertisement to patrons in April that suggested the company's handbags could be had at its stores for as low as $99. The ad, sent weeks before Mother's Day, featured... To view the full article, take a free trial now.