NEW YORK (AP) — A Tiffany & Co. subsidiary is suing Costco, claiming the wholesale club operator has been selling engagement rings wrongly labeled "Tiffany" rings.
The high-end jeweler filed lawsuit in U.S. District Court in New York on Thursday.
Tiffany and Company alleges trademark infringement, counterfeiting, unfair competition, injury to business reputation, false advertising and deceptive business practices. The company says the rings are not in fact Tiffany rings, nor are they in any way properly associated with Tiffany.
The retailer said that a customer alerted Tiffany in November to the sale of what was promoted on in-store signs as "Tiffany" diamond engagement rings at a Costco store in Huntington Beach, Calif.
Tiffany immediately launched an investigation and said that it learned that Costco has been selling different types of rings for many years identified as "Tiffany" rings, without the company's knowledge. The jewelry retailer said that Costco led its customers to believe they were buying authentic Tiffany products at significant discounts.