Costo, the largest warehouse club retailer in the US, has been slapped with a lawsuit from Michael Kors, who have accused it of false advertising.
Michael Kors, a high-end fashion retailer, claims its accessories were advertised by Costco in a series of nationwide campaigns, even though the wholesaler is not authorised to sell the brand.
In one Mother’s Day campaign, Costco claimed to be selling Michael Kors bags “starting at $99”; the Michael Kors website retails ladies handbags at between $298 and $1,195.
Michael Kors said the wholesaler was running a “bait-and-switch” false advertising scheme, after its reps went into 19 stores and couldn’t find any of its handbags.
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.