Costco Is At It Again: The Michael Kors Edition
Costco has few friends in the fashion world, and now the superstore can add Michael Kors to the list of people it’s pissed off. Though it may surprise you, his complaint isn’t about counterfeiting, as so many fashion-related lawsuits are. Instead, Michael Kors Holding Ltd. is suing Costco over an email.
It’s not as trivial as it sounds. In preparation for Mother’s Day, Costco sent out a blast email out to its customers (’cause who doesn’t buy their Mother’s Day gifts at Costco, right?). The email contained pictures of several bags, with a caption that read “designer handbags starting at $99.99 delivered.” The problem? One of the pictures was of a Michael Kors handbag, even though Michael Kors has never sold any of his designs to Costco. Scouts were even sent to several different Costco locations to see if Michael Kors bags were somehow actually avalable, and nothing turned up.
That means the email was blatant false advertising, and according to the lawsuit, it was intended to “lure unsuspecting consumers away from bona fide Michael Kors retailers and into Costco stores.” Though the two brand hardly seems like competitors, Kors is demanding that Costco be forbidden from advertising with its products and seeking punitive damages and other moolah.
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