Michael Kors Sues Costco Over 'Bait-And-Switch' Ad

Law360, New York (July 12, 2013, 3:16 PM EDT) -- Fashion brand Michael Kors LLC on Thursday sued Costco Wholesale Corp. in New York, accusing the retailer of utilizing the fashion labels' trademarks to perpetrate a national “bait-and-switch” advertising campaign that falsely implied customers would be able to buy cheap Michael Kors handbags at Costco.

Costco, which is not an authorized Michael Kors retailer, sent an email advertisement to patrons in April that suggested the company's handbags could be had at its stores for as low as $99. The ad, sent weeks before Mother's Day, featured...
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