Lululemon has taken legal action against Costco, accusing the wholesale giant of selling unauthorized “knockoffs” of its popular athleisure wear, including the brand’s iconic $128 pants. The lawsuit, filed in late June 2025, marks a major escalation in the ongoing debate over intellectual property and “dupe” culture in the booming activewear market. Here’s the latest on the Lululemon Costco lawsuit, what’s at stake, and how both companies are responding.
Table of Contents
Lululemon Costco Lawsuit: What Sparked the Legal Showdown?
Lululemon, the Vancouver-based athletic apparel brand renowned for its premium leggings, hoodies, and jackets, filed a 49-page lawsuit in a California federal court on June 27, 2025. The complaint alleges that Costco’s private-label Kirkland Signature line is selling “confusingly similar” replicas of Lululemon’s bestsellers—including the Define jacket, Scuba hoodie, and ABC pants—at a fraction of the price.
Lululemon’s lawsuit claims:
- Costco’s products infringe on Lululemon’s patents, trademarks, and trade dress.
- The Kirkland-branded items are so similar in design that they mislead consumers into believing they are authentic Lululemon products.
- Some shoppers are intentionally purchasing the Kirkland versions because they are nearly indistinguishable from the originals, but cost as little as $8 compared to Lululemon’s $118–$128 price tags.
Lululemon argues that Costco is “unlawfully trading” on its reputation and “sweat equity,” damaging the brand’s image and causing significant financial loss.
Key Point Summary
- Lululemon filed a lawsuit against Costco on June 27, 2025, in California federal court.
- The suit accuses Costco’s Kirkland Signature line of infringing on Lululemon’s intellectual property by selling lookalike pants, hoodies, and jackets.
- Lululemon seeks to halt sales of the disputed products and recover financial damages.
- Costco has not yet issued a public response to the allegations.
- The case highlights growing legal battles over “dupe” culture in fashion and retail.
The Alleged Knockoffs: What Products Are in Dispute?
According to the lawsuit, the following Lululemon items are at the center of the dispute:
- ABC Pants: Lululemon’s men’s line, known for its fit and proprietary fabric technology.
- Define Jacket: A form-fitting women’s jacket, a staple in Lululemon’s collection.
- Scuba Hoodie: One of the brand’s most recognizable and sought-after sweatshirts.
Lululemon’s legal team provided side-by-side comparisons in court documents, highlighting similarities in stitching, fabric, and overall design. The complaint also points out the dramatic price differences, with Costco’s versions sometimes selling for less than 10% of the original’s retail price.
Lululemon’s Position: Protecting Innovation and Brand Value
In a public statement, Lululemon emphasized its commitment to innovation and the importance of defending its intellectual property. The company stated:
“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.”
Lululemon’s lawsuit seeks:
- An immediate halt to the manufacturing, importation, marketing, and sale of the disputed Kirkland products.
- Removal of any online or print advertisements for the alleged knockoffs.
- Financial compensation for lost profits and damage to the Lululemon brand.
Costco’s Response and the Broader Impact
As of July 1, 2025, Costco has not issued a formal public response to the lawsuit. The company did not respond to media requests for comment in the immediate aftermath of the filing.
The case has already sparked widespread discussion on social media platforms like Instagram and YouTube, with influencers and consumers debating the ethics of “dupes” versus outright counterfeits. Many shoppers have posted side-by-side comparisons, fueling further interest in the lawsuit and raising questions about how closely retailers can mimic high-end brands without crossing legal lines.
Why This Lawsuit Matters: The Future of “Dupe” Culture
The Lululemon Costco lawsuit is more than a dispute between two retail giants—it’s a test case for how brands can protect their designs in an era where “dupe” culture is rampant. As social media amplifies the popularity of affordable lookalikes, established brands are increasingly turning to the courts to defend their intellectual property.
If Lululemon prevails, the outcome could set a precedent for other fashion and lifestyle companies seeking to curb the spread of copycat products. On the other hand, a win for Costco might embolden other retailers to push the boundaries of design imitation.
What’s Next in the Lululemon Costco Lawsuit?
The case is still in its early stages. Lululemon has requested a jury trial and is pushing for a court order to stop Costco from selling the disputed items. The outcome could take months—or even years—to resolve, depending on whether the parties reach a settlement or the case proceeds to trial.
For now, shoppers will be watching closely to see if Costco continues to stock the Kirkland-branded athleisure items in question, and whether other brands follow Lululemon’s lead in cracking down on lookalikes.
Stay tuned for further updates on the Lululemon Costco lawsuit as the legal battle unfolds. For more breaking news and in-depth analysis on retail and fashion, subscribe to our newsletter and join the conversation in the comments below.