Costco sued by designer Michael Kors

Suit claims false advertising of handbags

Fashion designer Michael Kors is suing retail company Costco, accusing the warehouse giant of false advertisement.

The lawsuit claims Costco sent out an email blast to customers for Mother's Day that showed photos of Michael Kors designer handbags being advertised for $99.

Costco, however, does not sell Michael Kors bags.

Business Insider reporter Laura Stampler said, "It's Michael Kors' decision if it wants to go down to a lower price point at a store where you're allowed to buy a jumbo-sized toilet paper before you buy its luxury bag. So it doesn't necessarily want to make that leap down yet."

Earlier this year, Costco was accused of misleading customers into thinking it was selling Tiffany diamond rings.

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