Lululemon's Seeing Red Sues Costco Over $10 Yoga Pant Rip-Off!

Lululemon Sues Costco Over Alleged $10 'Dupes' of $128 Pants

The athletic apparel world is buzzing with news of a legal showdown. Lululemon, the popular yoga and athletic wear brand, has filed a lawsuit against retail giant Costco, alleging that Costco is selling cheap imitations – or "dupes" – of its signature apparel at significantly lower prices. The lawsuit, filed in California on Friday, claims that Costco is unfairly capitalizing on Lululemon’s brand reputation and intellectual property.

At the heart of the dispute are alleged knockoffs of Lululemon's popular ABC men’s pants, which retail for $128. Lululemon alleges that Costco's pants, sold for a mere $10, are a direct rip-off of their design. Similarly, the lawsuit claims that Costco's Kirkland Signature sweatshirts, priced at around $8, are copies of Lululemon's Scuba hoodies, which sell for $118.

Lululemon issued a statement emphasizing the importance of protecting its intellectual property:

“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.”

The lawsuit further accuses Costco of misleading customers into believing that these dupes are manufactured by the same suppliers as the original Lululemon products. To summarize the key points:

• Lululemon is suing Costco for allegedly selling "dupes" of its apparel.
• The lawsuit focuses on alleged knockoffs of Lululemon's ABC pants ($128) and Scuba hoodies ($118).
• Costco's alleged "dupes" are priced at $10 for pants and $8 for sweatshirts.
• Lululemon claims Costco is trading on its brand reputation and misleading customers.
• Lululemon seeks financial damages and a court order to stop Costco from selling the products.

According to the lawsuit, Lululemon had previously sent a letter to Costco in November 2024 regarding hoodies that allegedly infringed on the Scuba design. While Costco reportedly removed some of the infringing products at the time, Lululemon claims the retailer later resumed selling similar items and continues to do so today.

This isn't the first time Lululemon has taken legal action against alleged copycats. In 2021, the company sued Peloton over similar apparel design infringements. That lawsuit was settled in 2022, and the companies subsequently announced a five-year partnership to sell co-branded clothing.
It remains to be seen how this latest legal battle will unfold. Lululemon is seeking to "fully recover" financial losses through unspecified damages and a court order to block Costco from selling the allegedly infringing products. The outcome could have significant implications for the fashion industry and the protection of intellectual property rights.

Interestingly, this lawsuit comes at a time when Lululemon is facing its own challenges. The company recently slashed its full-year forecast, citing a "dynamic macroenvironment" with added costs from tariffs, low demand amid economic uncertainty, and increased competition. Despite these headwinds, shares of Lululemon jumped 2.2% on Tuesday, although the stock is still down 36% so far this year.

The Lululemon-Costco lawsuit highlights the ongoing struggle between established brands and the allure of more affordable alternatives. It raises important questions about design protection, consumer perception, and the balance between innovation and imitation in the competitive world of athletic apparel. This case is definitely one to watch as it progresses through the courts.

Tags: Lululemon, Costco, Lawsuit, Apparel, Dupes, Knockoff, Yoga pants, Sweatshirts, ABC pants, Kirkland Signature, Intellectual Property, Design Infringement

Source: https://nypost.com/2025/07/01/business/lululemon-sues-costco-over-alleged-sale-of-dupes-copying-128-pants/