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Lululemon sues Costco for allegedly selling clothing knock-offs

(5 months ago)
Tara Deschamps
Business

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Lululemon Athletica Canada Inc. has filed a lawsuit in a California court against Costco Wholesale Corp., accusing the retailer of intellectual property infringement by selling knock-offs of popular Lululemon products, including Scuba hoodies, Define jackets, and ABC pants. The alleged fakes are sold under Costco's Kirkland private label and by manufacturers Danskin, Jockey, and Spyder. Lululemon, which previously sent cease and desist letters, is seeking a jury trial to halt sales and recover lost profits, arguing that these 'dupes' confuse customers and exploit its brand reputation.

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  1. 1 Recent years: 'Dupes' phenomenon gains popularity online.
  2. 2 Prior to lawsuit: Lululemon sends cease and desist letters to Costco.
  3. 3 Recently: Lululemon files a lawsuit against Costco in a California court.
  4. 4 Weeks prior: Lululemon announces plans for 'modest' price increases due to tariffs.
  • Potential legal battle between two major retailers.
  • Possible court-ordered cessation of sales of alleged knock-offs by Costco.
  • Financial penalties for Costco if Lululemon wins.
  • Increased scrutiny on the 'dupes' market and intellectual property rights.
What: Lululemon Athletica Canada Inc. is suing Costco Wholesale Corp. for allegedly selling counterfeit versions ('dupes') of its popular clothing products.
When: The lawsuit was filed 'recently' (prior to June 29, 2025). The 'dupes' phenomenon has been popular in recent years.
Where: A California court (where the lawsuit was filed). Lululemon is based in Vancouver, Canada, and Costco is based in Washington, US.
Why: Lululemon alleges that Costco's sale of knock-off products infringes on its patents and takes advantage of its established reputation and goodwill, leading to customer confusion.
How: Lululemon filed a 49-page lawsuit after previous attempts to resolve the issue with cease and desist letters. They are requesting a jury trial to seek an injunction against sales and financial compensation for lost profits.

Lululemon Athletica Canada Inc. has filed a lawsuit in a California court against Costco Wholesale Corp., accusing the retailer of intellectual property infringement by selling knock-offs of popular Lululemon products, including Scuba hoodies, Define jackets, and ABC pants. The alleged fakes are sold under Costco's Kirkland private label and by manufacturers Danskin, Jockey, and Spyder. Lululemon, which previously sent cease and desist letters, is seeking a jury trial to halt sales and recover lost profits, arguing that these 'dupes' confuse customers and exploit its brand reputation.