Lululemon files lawsuit against Costco, claims company is selling 'dupes' of some of its products

Audio By Carbonatix

Lululemon has filed a lawsuit against Costco that accuses the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure clothing.

Lululemon Athletica claims in its lawsuit filed in the U.S. District Court for the Central District of California that Costco has “unlawfully traded” on its reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel that uses knockoff, infringing versions of its patents.

Lululemon alleges that Costco is known to use manufacturers of popular branded products for its private label Kirkland brand, but that the company and the manufacturers don't tell consumers of the connection between them for many of the Kirkland-branded products. Because of this, Lululemon claims this leads at least some shoppers to believe that Kirkland-branded products are made by the authentic supplier of the “original” products. Lululemon claims Costco doesn't try to dispel the ambiguity.

“As an innovation-led company that invests significantly in the research, development, and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously and pursue the appropriate legal action when necessary," a Lululemon company spokesperson said in a statement.

Some of the products Lululemon says Costco is making duplicates of include its popular Scuba hoodies, Define jackets, and ABC pants.

Lululemon claims one of the duplicates that Costco sells is the Hi-Tec Men's Scuba Full Zip, with the lawsuit showing a screenshot image of Costco's website showing the item priced at $19.97. Lululemon sells several men's jackets that cost more than $100 each.

Costco, based in Issaquah, Washington, did not immediately respond to a request for comment on Tuesday.

Lululemon is requesting a jury trial and wants Costco to stop selling the products that it considers to be duplicates. It is also seeking an unspecified amount in monetary damages.

Lulemon was in a similar legal dispute with Peloton in 2021. Two years later the companies announced a five-year partnership that included Lululemon becoming the primary athletic apparel partner to Peloton.