Lululemon Sues Costco Over Alleged Sale of Low-Cost Apparel 'Dupes'

Lululemon, the premium athletic apparel company, has filed a federal lawsuit against Costco, alleging that the retailer is selling and manufacturing low-cost imitations of some of its most popular products. The lawsuit, filed in the U.S. District Court for the Central District of California, claims that Costco has replicated at least six Lululemon designs, including the Scuba hoodie, Define zip-up jacket, and men's ABC pant, and is offering them at a fraction of Lululemon’s retail prices. According to court documents, Lululemon asserts that products such as the Danskin Half-Zip Pullover ($8), Spyder Women's Yoga Jacket ($22), and Kirkland 5 Pocket Performance Pant ($10) closely mimic the look and feel of Lululemon’s originals, which retail for between $118 and $128. The company alleges that these items infringe on its patents and trade dress, and that Costco’s actions are likely to cause confusion among consumers about the origin of the products. Lululemon’s complaint accuses Costco of violating the Lanham Act, patent infringement, and breaching California’s Unfair Business Practices Act. The lawsuit seeks damages for lost revenue and harm to Lululemon’s brand reputation, as well as an injunction to halt the sale of the disputed products. The legal action comes amid the rise of so-called “dupe culture,” where consumers, often influenced by social media trends, seek out affordable alternatives to luxury goods. Lululemon claims it previously notified Costco in November 2024 regarding the alleged infringement, after which some items were temporarily removed; however, the company alleges that Costco resumed selling similar products.