Tiffany sues Costco for selling knock off ringsBy Mason White 8:31 AM February 18, 2013
|Tiffany store location|
By: Debbie Gross
(Scroll down for video) Costco was slammed with a lawsuit after they were caught selling knock off diamond rings, according to court proceedings in New York.
Luxury retailer Tiffany & Co., filed a lawsuit against Costco Warehouse Club, for millions of dollars in damages, after the discount retailer sold fake Tiffany diamond rings.
The lawsuit, filed in U.S. District Court in New York, accuses Costco with trademark infringement, counterfeiting and false and deceptive business practices. It is seeking damages equal to triple the amount of any gains realized on the sales and $2 million in punitive damages for each Tiffany ring that was sold.
The Tiffany lawsuit said they learned of the rings in November, when a customer at Costco, in Huntington Beach, California, realized that what was advertised as Tiffany diamond engagement rings for sale was actually knock offs. The customer complained to Tiffany, saying he was disappointed.
The lawsuit says that one of the rings sold for $3,199.99, another was listed for $6399.99.
Tiffany said that when confronted with the information, Costco, immediately removed all references to Tiffany. However, the complaint alleges that the sales practice had been going on for years.
It said that Costco did not use the description of Tiffany rings when they sold online in an effort to avoid detection.
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