Lululemon has filed a lawsuit against Costco, accusing the wholesale retailer of selling “dupes” of its $128 pants, hoodies, jackets, and other similar products at significantly lower prices.
What is Lululemon accusing Costco of?
The Vancouver-based athletic apparel brand filed the complaint in federal court in California on Friday, alleging that Costco used its private-label Kirkland Signature brand to trade on the company’s “reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel featuring knockoff versions” of its products, according to the 49-page suit.
‘They are difficult to distinguish from authentic lululemon products’
Lululemon, founded in 1998, offers customers “innovative, unique and high-performing” athletic apparel, footwear, and accessories renowned for their quality and performance. The company’s products have become sought after by athletes and individuals seeking products that align with their active lifestyles. Signature styles include Lululemon’s SCUBA hoodies and sweatshirts, DEFINE jackets, and ABC pants, according to the complaint.
The company said its products are so popular that other retailers have tried to replicate its styles, with the hashtag “#Lululemondupes” trending on TikTok as users share cheaper alternatives from different brands.
“Upon information and belief, some customers incorrectly believe these Infringing Products are authentic lululemon apparel while still other customers specifically purchase the Infringing Products because they are difficult to distinguish from authentic lululemon products, particularly for downstream purchasers or observers,” Lululemon said in the suit.
Costco’s Kirkland products are identical to the athletic brand’s
The brand cited articles from The Washington Post and The New York Times that described Costco’s $20 pants as nearly identical to those of Lululemon. The suit claims that Kirkland-branded dupes account for more than a third of Costco’s sales and alleges that the retailer misleads consumers by not disclosing the actual source, leading some to believe that the athletic brand manufactures the products.
According to the suit, the company is seeking to recover fully for the monetary damages and significant harm to Lululemon’s brands and reputation caused by Costco.
“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 said in a statement obtained by CNN.