Lululemon Files Lawsuit Against Costco for Allegedly Selling ‘Dupes’ to ‘Confuse’ Customers at Lower Prices

Lululemon has filed a lawsuit against Costco, claiming that the membership-based wholesale retail company sold similar products that confused Lululemon’s customers. 

In the lawsuit filed in federal court in California on Friday, June 27, and obtained by PEOPLE, Lululemon alleges that Costco’s private-label line Kirkland “unlawfully traded” on Lululemon’s “reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions” of its products.

Lululemon describes itself as “a path-breaking athletic and lifestyle apparel company” that has been in business since 1998. It references signature items such as its scuba hoodies and sweatshirts, and ABC pants, as high-demand “pioneering products.”

The company says it has “invested substantial effort and resources to develop, promote, and protect its brands and innovations.”

The retailer says the lawsuit was filed as part of “intellectual property enforcement” for “retailers who have chosen to copy rather than compete.”

“Costco has unlawfully traded upon Plaintiffs’ reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions of Plaintiffs’ well-known trade dress and design patents (the ‘Infringing Products’) and to recover fully for the monetary damages and significant harm to lululemon’s brands and reputation caused by Defendant,” Lululemon alleges. 

Lululemon further claims that Costco’s designs are now being referred to as “knockoffs” or “dupes.”

Lululemon claims there is a social media hashtag “LululemonDupes” that is typically used by influencers “when promoting these copycat products.”

“The Infringing Products create an improper association with Plaintiffs’ authentic products,” the lawsuit alleges.

According to Lululemon, Costco’s products “are difficult to distinguish from authentic Lululemon products.”

The lawsuit claims that the confusion is resulting in “intellectual property rights and damage” to Lululemon’s “hard-earned reputation and immense goodwill.”

“One of the purposes of selling “dupes” is to confuse consumers at the point-of-sale and/or observers post-sale into believing that the “dupes” are Plaintiffs’ authentic product when they are not,” Lululemon alleges in its claim.

Lululemon also cited a January 2025 article from The Washington Post, titled “Is That Hoodie a Lululemon or a Costco Dupe? No One Has to Know But You” as an example.

Costco is accused of copying items like “Danskin Ladies Half-Zip Hoodie,” “Danskin Half-Zip Pullover,” “Jockey Ladies Yoga Jacket,” “Spyder Women’s Yoga Jacket,” “Hi-Tec Men’s Scuba Full Zip,” and the “Kirkland 5 Pocket Performance Pant” from Lululemon.

The products are being sold at a fraction of the price, with the Hi-Tec Men’s Scuba Full Zip going for roughly $20 while Lululemon’s jackets began at about $118, per product photos shared in the lawsuit.

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“As a direct and proximate result of the foregoing acts, Plaintiffs have suffered and will continue to suffer significant injuries in an amount to be determined at trial,” Lululemon says.

Lululemon is seeking to “recover fully” an unspecified amount of monetary damages and is demanding that Costco stop making “dupes” of its products. 

Reps for Lululemon and Costco did not immediately respond to PEOPLE’s requests for comment.

“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,” a Lululemon spokesperson told CBS News.