Lululemon Athletica has filed a lawsuit against Costco Wholesale Corporation, accusing the retail giant of selling knockoff versions of its most iconic clothing items.
The legal complaint, filed on June 27, 2025, in the U.S. District Court for the Central District of California, claims that Costco’s private-label apparel is “confusingly similar” to Lululemon’s bestselling products—including its signature Scuba hoodies, Define jackets, and ABC pants.
Lululemon alleges that Costco has been knowingly infringing on its intellectual property despite receiving multiple cease-and-desist letters.
The lawsuit points to not only the physical resemblance of the products but also to social media trends and viral content that celebrate Costco’s items as “dupes” of Lululemon gear—a term often used to describe budget-friendly alternatives that mimic the look and feel of premium goods.
“Consumers have expressed confusion,” the complaint states, citing user-generated content and influencer videos where Kirkland-brand items are labeled as “Lululemon dupes.”
Lululemon argues that such confusion dilutes its brand identity and threatens the exclusivity that it has cultivated for years.
The legal action seeks monetary damages, including any profits Costco has earned from the sale of the alleged infringing products.
Lululemon is also requesting a permanent injunction to block Costco from selling any items that resemble its registered designs and trade dress.
The lawsuit further demands a jury trial, signaling the company’s intent to make a firm public statement about brand protection.
Costco has not yet issued a formal response, and it remains unclear whether the warehouse retailer will fight the case in court or seek a settlement.
This legal clash marks a new chapter in the growing tension between premium lifestyle brands and value-oriented retailers.
As the market for athleisure continues to grow, more consumers are turning to budget options that look similar to high-end apparel—but the legal limits of imitation remain hotly debated.
If Lululemon prevails, it could set a significant precedent for how design rights are enforced in the fast-moving fashion world, especially at a time when TikTok hauls and YouTube reviews can shape consumer perception overnight.
For now, the lawsuit raises critical questions: Where does inspiration end and infringement begin? And how far will brands go to protect the uniqueness that defines them?
As the case unfolds, both the fashion industry and retail giants will be watching closely.
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