Michael Kors sues Costco for false advertising of his handbags

Michael Kors Sues Costco Over Handbag Ad



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. A spokesman for Costco, based in Issaquah, Washington, was not immediately available for comment. The lawsuit resembles one that Tiffany & Co (TIF.N) 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. The case is Michael Kors (USA) Inc et al v.





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





Ive got plenty of other friends. I like to keep it really professional. I dont hang out. I dont go to little dinners. I dont kiki. None of that. And I think, for a lot of people, they want me to entourage it up for free. Im not interested. Hence, its better to work with people you dont really know.





Michael Kors Sues Costco- Alleges a Bait and Switch





The store can be accessed by entrance 2. Tenant announced for outlet center in West Palm Beach A Nordstrom Rack is slated to open in the fall of 2014 at the Palm Beach Outlets currently under construction in West Palm Beach, the retailer announced Wednesday. The rack stores, a division of Nordstrom Inc. , sell shoes, apparel and accessories at 30-to-70 percent off from regular prices found at Nordstrom stores. The 35,000-square-foot store will be on the west side of the center, part of the line of retailers along Interstate 95. Palm Beach Outlets will be off Palm Beach Lakes Boulevard and I-95. Other outlet stores are expected to begin opening February 2014.





Michael Kors sues Costco for false advertising





The issue stems from the Costco marketing email above, which was sent to Costco customers last April. Advertising Mother's Day gift ideas, including "designer handbags starting at $99," it includes images of several Michael Kors bags, many of which have the MK logo on prominent display. The problem is that Costco does not sell MK bags. Per Kors' lawyers, "Costco is not, and never has been, an authorized dealer of Michael Kors handbags, and upon information and belief, Costco does not currently sell Michael Kors handbags." The complaint accuses Costco of using bait-and-switch tactics to deliberately "lure unsuspecting consumers away from bona fide Michael Kors retailers and into Costco stores."





Michael Kors store coming to Galleria



Kors calls this email as a bait and switch advertising scheme as Costco has no agreement to sell Michael Kors products and for sure not the handbags pictured. The website for Costco has no products relating to Kors. This is not the first time Costco has been sued for this type of activity. In February, Tiffany & Co. Costco has responded to the lawsuit, as reported in BusinessWeek, that they sold the rings with Tiffany settings. They claimed this was a generic term. This was quickly refuted by Tiffany & Co. That suit is still pending. Kors further states that Costco might have carried Kors handbags at one time, but not at the $99 price point in the advertising.







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.





Michael Kors Just Slapped Costco With a Big Fat Lawsuit





warehouse club retailer of running a "bait-and-switch" false advertising scheme. 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. "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. A spokesman for Costco, based in Issaquah, Washington, was not immediately available for comment.





Michael Kors sues Costco for false advertising





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. "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. A spokesman for Costco, based in Issaquah, Washington, was not immediately available for comment. 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. The case is Michael Kors (USA) Inc et al v.