Costco’s Popular Dupes Under Fire as Lululemon Files Lawsuit Over Alleged Knockoffs
Lululemon is taking legal aim at Costco, filing a lawsuit that accuses the retail giant of selling unauthorized knockoffs of its signature apparel for a fraction of the price.
Filed Friday in the U.S. District Court for the Central District of California, the complaint alleges that Costco "unlawfully traded" on Lululemon’s "reputation, goodwill, and sweat equity" by selling unlicensed copies of its patented and trademarked designs.
Among the alleged infringements are Costco items like the Danskin Half-Zip Pullover (sold for $8), which Lululemon says mimics its $118 Scuba Pullover. Other examples include the Jockey Ladies Yoga Jacket and Spyder Women’s Yoga Jacket, both sold for $22 and resembling Lululemon’s $128 Define Jacket, and the Kirkland 5 Pocket Performance Pant, a $10 product that allegedly copies the $128 ABC Pant.
The complaint claims violations under trade dress infringement, the Lanham Act, patent law, and California’s Unfair Business Practices Act. Lululemon is seeking monetary damages for lost profits and a permanent injunction to stop Costco from continuing to sell the products.
The lawsuit comes as “dupes” — cheaper lookalikes of luxury and designer items — surge in popularity, especially on social media platforms like TikTok, where hashtags such as #LululemonDupes have trended widely among younger shoppers.
Lululemon alleges that Costco knowingly contributed to consumer confusion, profiting by allowing customers to believe that its Kirkland-label items were made by or affiliated with Lululemon. The complaint also notes that Costco frequently uses the same manufacturers as popular name brands for its Kirkland products, contributing to “source ambiguity.”
The company says it contacted Costco in November to address the issue. While Costco removed some of the infringing products — including those resembling the Scuba hoodie — the suit claims the retailer later introduced a Hi-Tec Men’s Scuba Full Zip, which again violated Lululemon’s trademarks.
Lululemon is requesting a jury trial, financial restitution, and a court order to permanently block Costco from manufacturing or marketing the alleged dupes, as well as the removal of any ads or online content featuring them.
Costco has not yet responded to requests for comment. Lululemon stated, “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.”