Lululemon Sues Costco Over Alleged Knockoff Athleisure Gear

Lululemon is taking Costco to court, claiming the wholesale giant is selling cheaper copycat versions of its popular activewear — and misleading shoppers in the process.

In a lawsuit filed in the U.S. District Court for the Central District of California, Lululemon accuses Costco of infringing on its patents and profiting from the brand’s reputation by offering unauthorized “dupes” under Costco’s in-house Kirkland label.

What’s the Issue?

At the heart of the case are several of Lululemon’s signature items, including:

• Scuba hoodies
• Define jackets
• ABC pants

Lululemon points specifically to the Hi-Tec Men’s Scuba Full Zip, sold on Costco’s website for just $19.97, as an alleged knockoff. In contrast, Lululemon’s comparable jackets often retail for over $100.

The company says Costco is using similar designs and selling them at steep discounts, leading some customers to mistakenly believe Kirkland products are made by Lululemon or its manufacturers.

“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,” said a Lululemon spokesperson.

Costco’s Quiet Playbook?

Lululemon also claims Costco has a history of working with manufacturers from popular brands to produce its private-label items — without disclosing those connections to shoppers. According to the lawsuit, that strategy fosters confusion and allows Costco to “trade on the goodwill” of premium brands without explicitly stating any affiliation.

So far, Costco has not responded publicly to the lawsuit.

What Lululemon Wants

The athleisure company is seeking:

• A jury trial
• A court order blocking Costco from selling the alleged knockoffs
• Monetary damages (exact amount unspecified)

Not Their First Rodeo

This isn’t Lululemon’s first legal battle over product imitation. Back in 2021, the company filed a similar lawsuit against Peloton for allegedly copying its athletic wear. That case didn’t go the distance — instead, it ended in a surprising twist: the two brands struck a five-year partnership in 2023, with Lululemon becoming Peloton’s official athletic apparel provider.

Bottom line: Lululemon is drawing a hard line in the sand when it comes to protecting its premium image — and it’s not afraid to take on retail giants like Costco to do it.