'Lulu vs. Costco': The $10 Dupe War Just Got Ugly

Lululemon, King’s Road, Chelsea on Sept. 18, 2022. Photo courtesy of Philafrenzy under CC BY-SA 4.0.

When you spot that sleek hoodie or those buttery-soft pants at a steep discount, it’s easy to think you’ve scored a deal. But according to Lululemon, that bargain from Costco might not be what it seems.

A Fight Over Fabric and Familiarity

Lululemon Athletica has filed a lawsuit against Costco Wholesale, claiming the retail giant is selling unauthorized duplicates - often referred to as “dupes” - of its high-end athleisure gear.

The lawsuit, filed in late June in the U.S. District Court for the Central District of California, accuses Costco of infringing on the brand’s intellectual property and deliberately confusing customers with similar designs sold under its private label and other brands.

The Vancouver-based apparel company alleges that Costco’s Kirkland brand, as well as other items it stocks, feature products that mirror Lululemon’s signature styles, like the $118 Scuba hoodie and $128 Define jacket, but sell for a fraction of the price - sometimes under $10.

The Core Claims

Lululemon says this case goes beyond typical market competition. According to the suit, the similarities in appearance and marketing are close enough to constitute trade dress infringement, a legal term that covers the overall look and feel of a product. The company argues that Costco’s dupes cause consumer confusion, with some shoppers reportedly believing the Kirkland-brand items are made by Lululemon itself or buying them specifically because they look almost identical to the original designs.

Costco has not publicly commented on the case.

The Bigger Picture

This isn’t Lululemon’s first trip to court over lookalike products. In 2021, the company sued Peloton for selling apparel that allegedly copied Lululemon’s design. That dispute was eventually resolved, and the two brands later entered a five-year partnership.

Now, Lululemon is asking the court to stop Costco from selling the alleged knockoffs and to award unspecified monetary damages for lost profits and brand dilution.

With fast fashion and social media pushing demand for cheaper alternatives, the question of where inspiration ends and infringement begins is getting trickier. For now, Lululemon is drawing a firm line - and Costco finds itself squarely on the other side.

References: Lululemon accuses Costco of selling ‘unauthorized’ versions of its $128 pants | Lululemon sues Costco, alleging the retailer copied its designs | Lululemon files lawsuit against Costco, claims company is selling ‘dupes’ of some of its products