An illustration presented in the lawsuit highlights the Scuba hoodie case. While Lululemon prices their hoodies at over $100, Costco offers a similar version online for approximately $8.
WASHINGTON — High-end athleticwear company Lululemon is suing Costco, accusing the warehouse retailer of selling knockoffs of Lululemon’s clothing.
Filed on Friday in the U.S. District Court for the Central District of California, the lawsuit claims Costco is engaging in selling imitation products, often termed “dupes” in the fashion industry, at a significantly lower cost. An example presented in the lawsuit showcases the Scuba hoodie, where Lululemon’s price is more than $100 compared to Costco’s $8.
The lawsuit alleges that Costco is intentionally mimicking the Lululemon-brand clothing in an effort to make customers think they are the same.
Lululemon contends that Costco frequently collaborates with manufacturers of well-known brand items to create its own Kirkland label products. However, the company and these manufacturers typically do not disclose to consumers the association behind many Kirkland-branded goods.
“Upon information and belief, some customers incorrectly believe these Infringing Products are authentic lululemon apparel while still other customers specifically purchase the Infringing Products because they are difficult to distinguish from authentic lululemon products, particularly for downstream purchasers or observers,” the lawsuit alleges.
The company is asking the court to stop Costco from selling the “dupes” of Lululemon products, and for repayment to “recover fully” from the revenue lost by customers buying the Costco versions of the outfits instead.
According to the lawsuit, the Costco products Lululemon claims infringe on their own include the “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 “Kirkland 5 Pocket Performance Pant.”
Lululemon, a Vancouver-based clothing company, has made a name for itself in recent years by selling athleisurewear such as sweats and leggings, that often cost significantly more than similar products sold at other stores.
It’s not the first time the company has sued over knockoff apparel before. In 2021, Lululemon sued Peloton, the stationary bike maker, for allegedly making and selling clothing that was similar to Lululemon products. After settling the lawsuit in 2022, the pair eventually went into business together, selling branded clothing.
The Associated Press contributed to this story.
