Jul 1, 2025 - Economy

Lululemon sues Costco Wholesale for selling alleged dupes

Kelly Tyko

Costco Wholesale club storefront with employee pushing multiple carts — Costco Wholesale is being sued by Lululemon over allegedly selling cheaper knockoffs. Photo: Tim Boyle/Getty Images

Lululemon is suing Costco Wholesale, accusing the retailer of selling cheaper, unauthorized imitations of some of its popular clothing items.

Why it matters: The lawsuit could signal a pushback from original creators trying to reclaim control over their product designs, despite the "dupe" economy thriving on social media.

Costco didn't immediately respond to Axios' request for comment.

The big picture: In the lawsuit filed last week in the U.S. District Court for the Central District of California, Lululemon alleges that Costco has infringed on its patents by selling athleisure products that closely resemble its own.

Lululemon claims that Costco's Kirkland brand and other brands the retailer sells are offering knockoff versions of its products, such as the Scuba hoodies, Define jackets and ABC pants.
Court documents cite examples, including the Hi-Tec Men's Scuba Full Zip jacket, with a screenshot showing it priced at $19.97, while similar Lululemon items retail for over $100.
The lawsuit claims that Costco and its manufacturing partners do not clarify their relationship to consumers, potentially misleading customers into believing the items are made by Lululemon.

What's next: The Vancouver-based athletic apparel brand is seeking a jury trial, a halt to the sales of the disputed products and unspecified monetary damages.

Flashback: This isn't Lululemon's first legal conflict over product duplication.

The company previously reached a resolution with Peloton in a similar case in 2021. The two then formed a partnership in 2023.

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Lululemon sues Costco Wholesale for selling alleged dupes

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