Tiffany and Co is suing Costco for allegedly selling diamond rings that were falsely labeled as Tiffany rings.
In an investigation, the lawsuit says that Tiffany found that Costco salespeople were referring to their rings as labeled Tiffany. The rings were not referred to that online.
Tiffany filed the lawsuit in U.S. District Court in New York on Thursday.
“The Costco salesperson also referred to each of the rings as a ‘Tiffany ring,’ and said the store generally carries one of each item,” according to the complaint. “Neither of the rings identified in the Huntington Beach store as ‘Tiffany’ was, in fact, a Tiffany ring, nor was it manufactured by, approved by, licensed by, or otherwise in any way properly associated with Tiffany.”
“Unbeknownst to Tiffany, Costco had apparently been selling different styles of rings for many years that it has falsely identified on in-store signage as ‘Tiffany'” and “in warehouse stores around the United States,” the lawsuit stated.
The lawsuit being filed also says, “Tiffany has never sold nor would it ever sell its fine jewelry through an off-price warehouse retailer like Costco.”
Jeffrey Mitchell, attorney for Tiffany, said hundreds maybe even thousands of Costco members may have mistakenly lead to believe they were buying the Tiffany labeled rings. “One of the reasons to file the lawsuit is to get all the information about what was going on at Costco, how long and why. The lawsuit will hopefully answer those questions.”
Tiffany and Co is asking Costco to pay for all profits made from selling the alledged Tiffany labeled rings and as well as for damages to the value of the Tiffany brand for selling discounted luxury goods.
Tiffany said that when they confronted Costco with the information, Costco said it immediately removed all reference to the Tiffany brand, but the lawsuit alleges the sales practice had been going on for many years.
Costco has declined to make any comment.
Leigh Ann Lindquist, attorney with Sughrue Mion, PLLC, a law firm that is not involved in this dispute said, “Tiffany wants to maintain control over its name and products. It wants consumers to come to its store or website to purchase product which are known for their quality. Going to a Tiffany store is an experience and walking away with a blue box with a Tiffany ring is something special that Tiffany created.”
Beautiful Vintage Feel to Jessica Biel Engagement Ring
Elizabeth Taylor Jewelry Sold at Auction Sets Records Selling for $115 Million Total
Are Selena Gomez and Justin Bieber Engaged? Valentines Day Diamond Ring