The lawsuit, filed in the U.S. District Court for the Central District of California, mentions the Scuba hoodie as one of the examples. Lululemon sells their hoodies for over $100, whereas Costco offers a similar version for approximately $8 on their website.
WASHINGTON — High-end athleticwear company Lululemon is suing Costco, accusing the warehouse retailer of selling knockoffs of Lululemon’s clothing.
According to the allegations, Costco is accused of selling knockoffs or “dupes” of popular branded products at a significantly lower price. This practice has raised concerns in the fashion industry. One specific instance highlighted in the lawsuit is the Scuba hoodie comparison between Lululemon and Costco.
The lawsuit alleges that Costco is intentionally mimicking the Lululemon-brand clothing in an effort to make customers think they are the same.
Lululemon claims that Costco has a history of utilizing manufacturers of well-known brands to produce items under its private label Kirkland brand. However, the lawsuit asserts that consumers are often unaware of this connection between Costco and the original manufacturers for many Kirkland-branded products.
“Upon information and belief, some customers incorrectly believe these Infringing Products are authentic lululemon apparel while still other customers specifically purchase the Infringing Products because they are difficult to distinguish from authentic lululemon products, particularly for downstream purchasers or observers,” the lawsuit alleges.
The company is asking the court to stop Costco from selling the “dupes” of Lululemon products, and for repayment to “recover fully” from the revenue lost by customers buying the Costco versions of the outfits instead.
According to the lawsuit, the Costco products Lululemon claims infringe on their own include the “Danskin Ladies Half-Zip Hoodie,” “Danskin Half-Zip Pullover,” “Jockey Ladies Yoga Jacket,” “Spyder Women’s Yoga Jacket,” “Hi-Tec Men’s Scuba Full Zip,” and “Kirkland 5 Pocket Performance Pant.”
Lululemon, a Vancouver-based clothing company, has made a name for itself in recent years by selling athleisurewear such as sweats and leggings, that often cost significantly more than similar products sold at other stores.
It’s not the first time the company has sued over knockoff apparel before. In 2021, Lululemon sued Peloton, the stationary bike maker, for allegedly making and selling clothing that was similar to Lululemon products. After settling the lawsuit in 2022, the pair eventually went into business together, selling branded clothing.
The Associated Press contributed to this story.
