Costco has been slapped with a massive bill for damages after misleading customers about engagement rings sold in its stores.
The wholesale giant was sued by Tiffany & Co. for selling “Tiffany” rings that actually weren’t even made by the jeweler. Costco had claimed they weren’t using Tiffany’s signature blue boxes or claiming they were made by the well-known jeweler, but rather defining them as Tiffany-styled rings.
A U.S. federal judge ordered Costco to pay $11.1 million in trebled profits and $8.25 million in damages. That’s an expensive lesson for Costco. They plan to appeal this ruling, which would cost them over $19 million.
COSTCO owes Tiffany $19 m for selling counterfeit rings.
What? I thought COSTCO was a good lib company.
— Larry Schweikart (@LarrySchweikart) August 15, 2017
— Chris ?? #MAGA (@Chris_1791) August 15, 2017
Potentially thousands of Costco shoppers own rings they may believe to be authentic Tiffany rings but are actually fake. This could prove expensive not only in terms of damages but to Costco’s reputation as well. Costco customers love a good deal, but they don’t like being scammed.
More information on this lawsuit is in the video below.
This really does appear to sound like a deceitful marketing ploy. The Tiffany name is incredibly valuable and Costco apparently tried to rip it off.
Share this if you think Costco scammed its customers!