Michael Kors hopes that the lawsuit his firm filed yesterday is in the bag.
The fashion titan slapped the suit on Costco, accusing the wholesale-distribution giant of pushing a “deceptive bait-and-switch advertising scheme” aimed at getting consumers to believe they can buy fancy Michael Kors handbags through Costco at bargain prices.
According to the trademark-infringement suit filed in Manhattan federal court, Costco on April 17 sent a “Mother’s Day gift ideas” e-mail blast nationwide that read: “Designer handbags, starting at $99 delivered.”
To right of the ad was a photo of three large handbags, including one unmistakably by Michael Kors, the suit says. There were seven smaller pictures of handbags below, three of them designed by the fashion guru.
The bags displayed appear to include the Michael Kors’ “Bedford Bowling Satchel” and” Hamilton East West Satchel,” which run for $398 and $298 a pop, respectively, through Macy’s web site.
Upon learning of the ads, “agents of Michael Kors” visited 19 of Costco’s stores nationwide and surfed its Web site, but found no Michael Kors handbags for sale, the suit says.
“Costco is not an authorized retailer of Michael Kors handbags, yet nonetheless it has disseminated nationwide advertising that prominently features Michael Kors’ highly sought-after handbags and claims those handbags are available from Costco ‘starting at $99,’” the suit contends. “But when a consumer ‘takes the bait’ and seeks to purchase Michael Kors handbags at a Costco store or on Costco’s retail website, no such handbags are available.
“This bait and switch scheme, which intentionally exploits the popularity and appeal of Michael Kors’ luxury handbags to lure unsuspecting consumers away from bona fide Michael Kors retailers and into Costco stores, unjustly benefits Costco to the detriment of Michael Kors and its consumers and authorized retailers.”
The suit seeks a court order to stop Costco from future “unauthorized” use of the Michael Kors trademark and compensation for punitive damages.
A lawyer for Michael Kors declined comment, and Costco did not return messages.
The lawsuit is similar to one Tiffany & Co brought against Costco in February. The jeweler alleged Costco used Tiffany’s trademarks online and on at least one in-store ring display case.