Transcript for Costco ordered to pay Tiffany $19M for selling knockoff rings
Thanks so much. To that $19 million legal battle pitting Costco against Tiffany. The two going head-to-head over diamond rings and the judge ordering Costco to pay up but they're now fighting back so let's go to Rebecca Jarvis with all the details. Hey, David, good morning. After turning a nearly $4 million profit on diamond rings allegedly bearing the Tiffany name Costco has been ordered to pay nearly five types that amount to the luxury jeweler. But now Costco says they will fight back against the judgment. This morning, a big boxer fighting back at the little blue box. Costco saying it will now appeal a federal judge order to pay Tiffany a whopping $19 million after earning $3.7 million on diamond rings identified on store signs as Tiffany rings. It's basically telling the customer they're getting the same quality, they're getting the same customer service. They're getting everything that that Tiffany brand name brings to the table. Those customers think they're getting that brand name but they're not. Reporter: These price tags that say Tiffany diamond ring were spotted inside a California Costco. The rings a fraction of what the real thing costs. Starting price on Tiffany's website, $12,600. When Tiffany found out that Costco was selling rings that they were calling Tiffany that were not made by our client, that was a huge problem. Reporter: A federal judge ruling that Costco's management displayed at best a cavalier attitude toward Costco's use of the Tiffany name in conjunction with ring sales and marketing and Costco says the diamond ring in question is commonly known as a Tiffany setting and says they intended that the word Tiffany convey only that the rings had this style of setting, not that the rings were Tiffany & co. Branded rings. I don't think they have a strong case on appeal and the court made it clear that Tiffany had a strong case to support its claim that Costco was purposely and intentionally causing clients to believe that they were buying a Tiffany engagement ring. Reporter: In addition to that $19 million payment, Costco is also barred from using the stand-alone word Tiffany to describe any products that aren't connected to the famous jewelry brand. Guy, this is about truth in advertising. When you go into a store you want to know what's on the label is the legitimate truth That's the truth. Thank you, Rebecca. We go to the real ginger zee
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