Costco (COST) is in hot water after selling fake Tiffany (TIF) engagement rings in its stores.
US District Judge Laura Taylor Swain ruled that Costco will have to face a jury that will decide what damages the company will have to pay Tiffany for using its name in its stores. The hearing is set for Oct. 30 and Swain said she expects the two companies to make goodwill efforts to solve the problem, reports Reuters.
Costco was caught selling the fake rings at a store in Huntington Beach, Calif. It claimed that the name Tiffany was too generic and wasn’t a proper trademark. Judge Swain turned this argument down. The retail chain has alerted customers that bought fake rings of the issue and has offered full refunds on the items, Reuters notes.
Tiffany claims that Costco went so far as to sell its rings in similar packaging to what it uses. One couple that bought one of the fake rings at the retail store only discovered that it was a fake after the stone fell out of it, reports The Consumerist.
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