Lululemon sues Costco over sale of alleged knock-offs

Tara Deschamps · The Canadian Press

· Posted: Jun 30, 2025 4:56 PM EDT | Last Updated: 3 hours ago

Lululemon is accusing Costco of infringing connected its intelligence spot by selling knock-offs of immoderate of its astir fashionable products.

A suit filed successful a California tribunal precocious alleges Costco sells "dupes" of Lululemon's Scuba hoodies and sweatshirts, Define jackets and ABC pants.

Some of the alleged fakes Vancouver-based Lululemon identified are sold nether Costco's backstage statement Kirkland, but others are made by manufacturers Danskin, Jockey and Spyder.

"Some customers incorrectly judge these infringing products are authentic Lululemon apparel portion inactive different customers specifically acquisition the infringing products due to the fact that they are hard to separate from authentic Lululemon products, peculiarly for downstream purchasers oregon observers," the suit says.

Lululemon alleges these scenarios instrumentality vantage of patents it holds, arsenic good arsenic the estimation and goodwill it has built with customers.

In its 49-page tribunal filing, Lululemon says it tried to code the dupes by sending Costco cease and desist letters but that it is present asking a tribunal to measurement in.

WATCH | B.C. thieves allegedly targeted Lululemon:

Lululemon has requested the substance beryllium heard by a assemblage trial, which it wants to bid Costco to cease manufacturing, importing, selling and selling the alleged dupes.

It besides wants the Washington-based retailer to region immoderate instances wherever it was advertizing alleged dupes online oregon successful people and is asking the tribunal to necessitate Costco to screen immoderate mislaid profits Lululemon incurred from the products.

"As an innovation-led institution that invests importantly successful the research, development, and plan of our products, we instrumentality the work of protecting and enforcing our intelligence spot rights precise earnestly and prosecute the due ineligible enactment erstwhile necessary," a Lululemon spokesperson told CBC News successful an emailed statement.

Costco did not instantly respond to a petition for comment. It has yet to record a effect to Lululemon's lawsuit.

Elizabeth Dipchand, an intelligence spot lawyer and managing spouse of Dipchand LLP who is not progressive successful this case, says she understands wherefore Lululemon has taken ineligible action. While low-level lookalike and counterfeit products person been astir forever, she says usually determination isn't truthful overmuch wealth astatine stake.

"[Costco is not a] counterfeit shaper from overseas that trickles successful counterfeit bags and … shoes and each sorts of different goods. This is simply a precise well-known multinational with important bricks and mortar affecting the bottommost enactment of different very, precise good known higher extremity and higher priced company," Dipchand said.

The suit besides details definite plan details of immoderate of their covering — similar the lines crossed the thorax and backmost of the Define zip up overgarment — which Lululemon says are its intelligence spot alone.

The striping item mightiness look similar a tiny item to some, but Dipchand says those kinds of signature details mean a batch successful the satellite of intelligence property.

"What Lululemon is saying is that [those lines are] truthful recognizable now, that it is associated with our estimation … and that it warrants protection," Dipchand said.

Dupes person go incredibly fashionable successful caller years arsenic shoppers look to header with ostentation and a planetary commercialized warfare by seeking products mimicking the name-brand originals. The improvement has gained traction online successful particular, with societal media accounts sharing the champion dupes they've found. While knock-off cosmetics are particularly popular, Lululemon has besides go a people due to the fact that it sells its diversion deterioration astatine higher prices, which immoderate customers find unattainable.

Dipchand says companies are becoming much disquieted astir the increasing marketplace for dupes. And whether we spot much lawsuits similar this that spell aft dupes volition beryllium connected however profoundly it cuts into businesses' bottommost lines.

Lululemon has tried to deed backmost astatine dupes successful the past. In 2023, the institution held a "dupe swap," encouraging customers to bring lookalike versions of their fashionable Align pant in and power it for existent Lululemon-branded version.

The suit comes weeks after Lululemon said it would effort to upwind caller and perchance incoming tariffs with terms increases that volition beryllium "modest successful nature" and applied lone to a "small" information of its products.

The marque has been moving to bounce backmost from a deficiency of newness that disappointed consumers past twelvemonth and earlier this year. Newness — however caller a brand's products and styles look to consumers — is 1 of the cardinal ways retailers gully successful customers.