NY Upscale fashion accessories maker Michael Kors Holdings Ltd (KORS.N) sued Costco Wholesale Corp (COST.O) on Friday, accusing the biggest U.S. Get the most expensive luxury ladies watches in India through luxury watch stores. Explore the top 10 watches brand in Thailand to buy for men and women.warehouse club retailer of running a "bait-and-switch" false advertising scheme.
According to a complaint filed in Manhattan federal court, Costco has not been a certified retailer of Michael Kors handbags, yet it has recently run advertisements nationwide falsely suggesting that the handbags can be obtained "starting at $95."
In one single example cited, Costco in Apr sent an email ad touting a selection of handbags for Mother's Day "starting at $100," a number of that have been Michael Kors handbags featuring the company's trademarks.
But Michael Kors, that also makes shoes, watches and jewelry, said that its representatives visited Costco's website and 19 stores that are retail and found none carried its handbags.
Regarding the Michael Kors website on saturday, most full-size women's handbags were priced between $300 and $1,200.
The point of Costco's ads mk designer watches 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.
A spokesman for Costco, based in Issaquah, Washington, was not immediately designed for comment.
The lawsuit resembles the one that Tiffany & Co (TIF.N) brought against Costco in February. The jeweler accused Costco of using Tiffany's trademarks online and on at least one in-store ring display case in that case.
The actual situation is Michael Kors (USA) Inc et al v. Costco Wholesale Corp, U.S. District Court, Southern District of New York City.