Costco’s popular budget-friendly athleisure alternatives have landed the retail giant in legal hot water. Lululemon has filed a lawsuit accusing Costco of selling unauthorized imitations of its trademark apparel designs, claiming the big-box store has infringed on patents and traded unfairly on the brand’s established reputation.
The lawsuit, filed Friday in the Central District of California, asserts that Costco “unlawfully traded” on Lululemon’s “reputation, goodwill and sweat equity” by marketing knockoffs that imitate the company’s patented products at dramatically lower prices. Lululemon claims this constitutes a violation of intellectual property law and unfair competition statutes.
The complaint outlines specific Costco items that Lululemon believes copy their designs. Among them: the “Danskin Half-Zip Pullover” sold for $8, which the suit calls a knockoff of Lululemon’s $118 SCUBA pullover; the “Jockey Ladies Yoga Jacket” and “Spyder Women’s Yoga Jacket,” both $22, which resemble the DEFINE jacket priced at $128; and the “Kirkland 5 Pocket Performance Pant,” offered at $10 online, described as a dupe for the $128 ABC Pant.
According to the filing, Lululemon accuses Costco of trade dress infringement, violating the Lanham Act, patent infringement, and breaching California’s Unfair Business Practices Act. The Vancouver-based brand is seeking compensation for lost profits and reputational damage, arguing that Costco has benefited financially from consumer confusion.
@xzce687 Lululemonis suing Costco over their dupes #lululemon #costco #lawyersoftiktok ♬ original sound – Yangyu
Fueling the lawsuit is the recent explosion of “dupes” culture—driven by social media trends and young consumers seeking high-end fashion alternatives. Hashtags like #LululemonDupes have gone viral on platforms like TikTok, where influencers showcase similar styles at bargain prices. Lululemon acknowledges this trend in the complaint, noting that Costco has become a prominent seller of such copycat designs.
The company says it has sent cease-and-desist letters to several retailers, including Costco, demanding a halt to the sale of infringing products. In particular, Lululemon claims Costco continued to profit off confusion by selling dupes of the SCUBA, DEFINE, and ABC lines—collections that have, according to the company, achieved “substantial fame and considerable goodwill.”
Beyond imitating designs, the suit alleges that Costco blurs the line between its private label goods and brand-name merchandise. “This source ambiguity preconditions at least some consumers into believing that private label, Kirkland-branded dupes are in fact manufactured by the authentic suppliers of the ‘original’ products,” the lawsuit reads. “Defendant does not dispel this ambiguity.”
In November, Lululemon issued a warning to Costco about infringing its SCUBA mark, prompting the retailer to temporarily remove some products. However, the lawsuit claims that Costco later introduced new items like the Hi-Tec Men’s Scuba full zip, further perpetuating the issue.
Now, Lululemon is asking the court to grant a jury trial, impose a permanent injunction to stop Costco from selling further dupes, order the removal of any advertisements or listings showcasing infringing products, and award damages equivalent to the losses sustained.
Costco has not publicly responded to the suit. Lululemon, in a statement to NBC News, emphasized its stance: “As an innovation-led company that invests significantly in the research, development, and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary.”
