Tiffany Accuses Costco of Selling Counterfeit Diamond Rings

On Thursday, Tiffany (NYSE: TIF  ) announced that it has filed suit in the U.S. District Court for the Southern District of New York against Costco Wholesale (NASDAQ: COST  ) , alleging "trademark infringement, dilution, counterfeiting, unfair competition, injury to business reputation, false and deceptive business practices and false advertising."

Specifically, Tiffany says the warehouse superstore has sold, and may still be selling, "counterfeit diamond engagement rings" under the Tiffany brand name. Tiffany is seeking injunctive relief (i.e. a court order forbidding Costco from conducting such sales) as well as damages compensating Tiffany for lost profits from sales that have already occurred.

"Tiffany has never sold nor would it ever sell its fine jewelry through an off-price warehouse retailer like Costco, either directly or indirectly," wrote the company in its press release.

According to the press release, Tiffany first learned that Costco might be selling rings using its name from a tip by a Costco customer in November of last year. It said it later learned such had apparently been happening for "many years." 

In 2004, Tiffany filed a similar lawsuit against eBay, claiming the online auction house allowed users to sell on its site knockoff Tiffany jewelry. In that case, Tiffany managed to assemble a trove of 186 "Tiffany" items sold on the site before filing suit.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 15, 2013, at 7:05 PM, donbcms wrote:

    There IS more than ONE "Tiffany"?? Tiffany & Co., Dale Tiffany, Medina Tiffany, etc., just to name a few.. Have beautiful Dale Tiffany, beaded, Victorian, table & floor lamps. Have often heard the phrase "Tiffany Style"??

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2259312, ~/Articles/ArticleHandler.aspx, 9/25/2016 1:29:05 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
COST $152.53 Down -0.62 -0.40%
Costco Wholesale CAPS Rating: ****
TIF $72.69 Down -0.12 -0.16%
Tiffany and Co. CAPS Rating: **