Lululemon is taking legal action against Costco, accusing the retail giant of selling copycat versions of its high-end athleisure apparel. In a 49-page lawsuit filed in California on June 25, the yoga and activewear brand claims Costco sold knockoffs of its popular Scuba sweatshirts and ABC men’s pants, undermining both its brand and profits.
For as long as fashion has existed, so have imitations—from Victorian-era faux diamonds to designers allegedly licensing their own looks to discount manufacturers. But Lululemon says this latest case crosses a line.
According to the lawsuit, Costco marketed and sold jackets, sweatshirts, and pants that closely resemble Lululemon products, often using eerily similar color names and descriptions. One example cited in the suit is a Danskin turquoise pullover called “Tidewater Teal”—the exact term Lululemon uses to describe the same shade in its Scuba line.
The legal complaint also points to Costco’s in-house Kirkland brand, which allegedly sold copycat versions of Lululemon’s ABC pants—a fan-favorite retailing for around $130—for just $20. Other brands named in the lawsuit include Jockey and Spyder, whose products Costco also carried.
Lululemon argues that Costco benefited financially from its “sweat equity” while damaging the premium appeal of the Lululemon name. The company is seeking restitution and damages but faces an uphill battle, as fashion knockoff cases are notoriously difficult to win due to limited copyright protections on clothing designs.
Costco has not yet responded publicly to the allegations. The outcome may hinge on behind-the-scenes agreements between Costco and its vendors. Many such contracts contain indemnification clauses that could shift legal liability to the manufacturers—if such clauses are in place here.
As the legal process unfolds, this case could serve as a litmus test for how far retailers can go in offering “dupes” before crossing into dangerous legal territory.