Costco is in some hot water after being sued by Michael Kors.
Michael Kors is alleging that Costco unlawfully used pictures of its luxury handbags to lure in customers when Costco did not have the authorization to actually sell the bags. The ad included an image of bags containing Michael Kors’ signature gold MK logo. Michael Kors filed a federal lawsuit in New York, alleging that Costco used a bait and switch scheme by advertising that the bags retailed starting at $99.99 when Costco did not have any bags to sell. The complaint argues that Costco has exploited the Michael Kors brand. Full price Michael Kors handbags generally run from around $298 to $1,195. The complaint seeks injunctive relief to halt the ad plus damages.
Tiffany & Co. also sued Costco in February of 2013 for alleged counterfeit engagement rings.