• by Tanya Gazdik , July 1, 2025

Lululemon is suing Costco for allegedly infringing on intellectual property rights by producing similar items at lower prices.

“The lawsuit claims Costco's Danskin and Kirkland brand clothing too closely resembles Lululemon's Scuba, Define, and ABC lines,” according to USA Today. “Lululemon is seeking damages for lost profits and a halt to Costco's production and marketing of the allegedly copied items.”

The 49-page lawsuit was filed June 25 in California and uses design images and side-by-side comparisons.

“Successfully suing over knockoffs is notoriously difficult for fashion brands and designers, in part because copyright laws are often vague, experts say,” according to The New York Times. “Lululemon’s case seeks restitution and payment from Costco, which it said profited off Lululemon’s ‘sweat equity’ and damaged the Lululemon brand.”

One example in the lawsuit is that Lululemon sells a Scuba hoodie for $118, while a Costco version sells for about $8.

“The company accuses Costco of leading customers into believing that the Kirkland-branded 'dupes' are in fact manufactured by the authentic supplier of the ‘original’ products,” according to CNN Business. “The retailer has sued others before. In 2021, Lululemon sued Peloton for allegedly making similar-looking apparel. Two years later, the companies patched up their relationship and partnered to sell branded clothing.”

The lawsuit alleged trade dress infringement, unfair competition under the Lanham Act, patent infringement, and violation of the California Unfair Business Practices Act.

“Dupes have surged in popularity, fueled by social media and young people seeking trendy, high-quality clothing without breaking the bank,” according to NBC News. “The suit noted that hashtags like 'LululemonDupes' have trended on social media platforms like TikTok, with influencers promoting "these copycat products.”

Costco did not respond to requests for comment.

“Costco has long been known for its private-label Kirkland Signature line and for producing its own versions of an array of consumer products and staples including liquor, vitamins, butter and diapers,” according to The Washington Post. “But in recent years, Costco’s versions of pricey athleisure have gone viral, raising the retailer’s profile among budget-conscious but style-minded consumers. Kirkland Signature buyers routinely turn to TikTok and other social media outposts to point out products’ striking similarities to brands such as Vuori, Ugg and Aritzia.”