Lululemon sues Costco for selling alleged dupes of its products

Lululemon Sues Costco for Allegedly Selling Imitation Products

By: The Canadian Press
 Published: June 29, 2025 at 10:46 AM EDT

Lululemon Athletica Canada Inc. has accused Costco Wholesale Corp. of infringing on its intellectual property by allegedly selling counterfeit versions of some of its most popular products.

A lawsuit recently filed in a California court claims that Costco has been selling knockoffs of Lululemon’s iconic Scuba hoodies and sweatshirts, Define jackets, and ABC pants.

According to Lululemon, some of these counterfeit products are sold under Costco’s private label Kirkland, while others are made by brands such as Danskin, Jockey, and Spyder.

The lawsuit states: “Some customers mistakenly believe these infringing products are authentic Lululemon apparel, while others intentionally purchase them because they are difficult to distinguish from the originals — especially for later buyers or casual observers.”

In its 49-page court filing, Lululemon said it had previously attempted to resolve the issue by sending cease and desist letters to Costco but is now requesting legal intervention.

The Vancouver-based brand has asked for a jury trial and wants the court to order Costco to immediately stop manufacturing, importing, marketing, and selling the alleged dupes. Lululemon is also requesting that any online or print advertisements featuring these products be removed and that Costco compensate for any lost profits resulting from these sales.

Costco has not yet responded to the lawsuit and did not immediately reply to media inquiries.

In recent years, demand for so-called "dupes" — cheaper alternatives closely mimicking expensive brand-name products — has surged, as consumers seek affordable options amid rising inflation and global trade tensions.

This trend has become especially popular on social media, where influencers and shoppers frequently showcase budget-friendly versions of luxury products.

While counterfeit cosmetics have been particularly in demand, Lululemon’s athletic wear — known for its premium prices — has also become a prime target.

The lawsuit comes as Lululemon recently announced it would introduce modest price increases on a small portion of its products to help offset new and potential tariffs.

The company has also been working to regain customer interest after a lack of fresh product styles last year and earlier this year.

In the retail world, "newness" — how fresh and updated a brand’s offerings appear — is a crucial factor in attracting and retaining customers.