Luxury jewelry Tiffany & Co. is seeking millions in damages in a lawsuit against everyone's favorite warehouse club, Costco. Tiffany alleges the discount retailer has sold counterfeit Tiffany diamond rings...thereby cheapening the famed brand.
The lawsuit, filed in a U.S. District Court in New York on Valentine's Day (appropriately), accuses Costco with trademark infringement, counterfeiting, and false/deceptive business practices. Tiffany & Co. seeks damages equal to triple the profits that Costco made on the sale of the rings, plus $2 million in punitive damages for every model of fake Tiffany rings sold.
Tiffany states that in November, a customer at Costco in Huntington Beach, CA, noticed that rings being advertised as Tiffany diamond engagement rings were on sale at Costco. The customer complained to Tiffany, stating her disappointment in seeing the jeweler selling engagement rings in the discount store. The lawsuit says that one ring was being sold for $3,199.99, while another was listed for $6,399.99.
Tiffany says that when it confronted Costco with the information, Costco said it immediately removed all reference to Tiffany diamonds within their stores. But the suit further alleges the sales practice has been going on for years, without the Tiffany's knowledge. Tiffany further says Costco attempted to deceive further by not using the Tiffany description of the same counterfeit rings when selling them online in an effort to avoid detection. LOVE Fashion News? LIKE me on Facebook and FOLLOW me on Twitter!