Lululemon Sues Costco Over Alleged ‘Dupe’ Sales of Popular Apparel

Athletic wear giant Lululemon has initiated legal action against Costco, accusing the wholesale retailer of unlawfully selling ‘dupes’ – or unauthorized duplicates – of its popular and pricey apparel.

The lawsuit, filed recently in California, alleges that Costco has exploited Lululemon’s brand reputation by offering knockoff versions of its products. Key examples cited include Lululemon’s $128 men’s ABC pants allegedly mimicked by Costco’s $10 pants, and Lululemon’s $118 Scuba hoodies copied by Kirkland Signature sweatshirts priced at just $8.

Lululemon emphasized its commitment to protecting its intellectual property rights, highlighting its significant investment in product research, development, and design. The Vancouver-based company claims Costco’s actions mislead customers into believing the ‘dupes’ are authentic or authorized products.

The legal complaint follows a November 2024 letter from Lululemon to Costco regarding alleged Scuba hoodie infringements, which Lululemon claims led to a temporary removal of some products before similar items reappeared. Lululemon is seeking unspecified damages and a court order to prevent Costco from continuing to sell the disputed merchandise.

This isn’t Lululemon’s first legal battle over alleged copycats; the company previously sued stationary bike giant Peloton in 2021, a dispute that was settled in 2022 with a subsequent partnership agreement. The lawsuit comes as Lululemon recently adjusted its full-year forecast downward, citing a challenging ‘macroenvironment’ and increased competition.

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