Lululemon has filed a federal lawsuit against Costco, accusing the wholesale giant of selling unauthorized “dupes” of its popular athleisure clothing at significantly lower prices. The complaint, lodged in California in late June 2025, alleges that Costco’s Kirkland Signature line and other brands it carries—including Danskin, Jockey, Spyder, and Hi-Tec—offer products that closely mimic the design and trade dress of Lululemon’s signature items such as the Define Jacket, ABC Pants, and Scuba Hoodie. Lululemon claims these lookalike products, which retail for a fraction of the price (for example, $8 to $22 at Costco versus $118 to $128 for Lululemon originals), are likely to cause consumer confusion and harm the brand’s reputation.
The lawsuit asserts that Costco’s actions constitute violations of trade dress protections, trademark law, and the California Unfair Business Practices Act. Lululemon points to social media trends, noting that hashtags like #LululemonDupes have become widespread, further blurring the line between authentic and imitation products in the eyes of consumers. The company argues that some shoppers may mistakenly believe these lower-priced items are genuine Lululemon apparel, while others are intentionally seeking out the near-identical alternatives due to their affordability. Lululemon is seeking injunctive relief to halt the sales of the disputed products, as well as monetary damages to recover lost profits.
This legal action highlights a broader industry trend, as the rise of “dupe” culture—fueled by social media and influencer marketing—has led to an increase in legal battles between original designers and retailers offering less expensive imitations. Lululemon, which has previously taken similar action against other brands, says it is committed to protecting its intellectual property and brand equity. Costco has not publicly commented on the lawsuit as of early July 2025.
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(Source: NBC | ABC | Axios | Associated Press)
