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Designer sues Costco over false ads

Michael Kors says retailer ran ads for his bag, but didn’t have any to sell

Costco pulled the old bait-and-switch on its customers, according to Michael Kors. And the fashion designer is taking the big box retailer to court over it.

According to Kors, Costco ran advertisements for his brand name bags, claiming it was selling them for $99—less than half the price. But, Kors says, not only was Costco not authorized to sell the bags, it also didn’t actually have any to sell. He says that the company intentionally exploited the popularity of his bags to lure customers away from legitimate retailers who carry them.

Kors is seeking damages including lawyers’ fees and any revenue Costco gained from shoppers who went to the retailer looking for the bags but bought something else.

Read more about this story at Huffington Post and BloombergBusinessweek.

For more InsideCounsel stories about designer suits, see:

Dolce and Gabbana convicted of tax evasion

Flea market owner is liable for trademark infringement of fake Coach products

Tiffany sues Costco over fake diamond engagement rings


Cathleen Flahardy

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