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Lululemon Sues Costco Over Selling ‘Dupes.’ What’s Behind the Case?

July 1, 2025
in News
Lululemon Sues Costco Over Selling ‘Dupes.’ What’s Behind the Case?
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For nearly as long as mankind has worn fancy things, someone out there has been trying to copy those things.

Ancient artisans cribbed from each other’s designs. Victorian hustlers duped diamond jewelry with shimmery paste. Christian Dior, the godfather of high fashion himself, was believed to sell his own designs to lesser known producers, who could make cheaper versions.

For the modern athleisure giant Lululemon, however, the duping has gone too far.

In a lawsuit filed in California on June 25, the company accused the wholesale retailer Costco of selling knockoff sweatshirts, jackets and other activewear at a fraction of what Lululemon charges.

Successfully suing over knockoffs is notoriously difficult for fashion brands and designers, in part because copyright laws are often vague, experts say. Lululemon’s case seeks restitution and payment from Costco, which it said profited off Lululemon’s “sweat equity” and damaged the Lululemon brand. Costco did not immediately respond to a request for comment.

What is Lululemon accusing Costco of doing?

Lululemon said Costco is selling knockoffs of its Scuba hoodies and sweatshirts, Define jackets and popular ABC pants for men.

Using design images and side-by-side comparisons, Lululemon, in a 49-page court filing, argued that Costco sold jackets and hoodies — made by clothing manufacturers such as Danskin, Spyder and Jockey — using terms in its marketing similar to what Lululemon uses.

In one instance cited in the lawsuit, Costco sold a turquoise Danskin-made pullover — which at a glance looks remarkably similar to Lululemon’s Scuba sweatshirt — with the color “Tidewater Teal.” It’s the same way Lululemon describes the color of its own teal sweatshirts.

Lululemon also accuses Costco of manufacturing a knockoff of its ABC pants — which retail for about $130 — under Costco’s own brand, Kirkland, and selling them for $20.

How has Lululemon dealt with dupes?

Lululemon, with its unadorned styles and high prices, is famously a target for knockoffs. Hashtags on TikTok direct shoppers to cheap, duped versions of the brand’s leggings and athletic wear.

It’s enough of a trend that Lululemon held several “dupe” exchanges in 2023, offering holders of confirmed “dupe” leggings to bring their clothes to designated sites and trade them for the real thing.

At the time, Nikki Neuburger, Lululemon’s chief branding officer, said it was an effort to acknowledge “dupes” as part of fashion while protecting the original producer.

“We saw it as a really fun way to play into something that is a real part of our culture, but in a way that really puts the focus back on the original,” Ms. Neuburger told CNN.

What is ‘dupe’ culture?

Many millennials probably recall a school or family trip to New York City in the 2000s, when a coveted status symbol of adolescence was a pair of sunglasses or a candy-colored knockoff designer purse, bought after haggling with a vendor on Canal Street.

But today’s dupe market has gone digital, and TikTok has become a prime platform.

Videos with the “dupe” hashtag have billions of views on the platform. For many in Gen Z, good dupes have become almost as coveted as originals. Many influencers promote knockoffs of Stanley mugs, Lululemon pants, sneakers and designer jewelry.

But designers are increasingly trying to stamp out knockoffs.

In November 2024, Sol de Janiero sued over dupes of its popular scented mist sprays. The year before that, Deckers, which owns the Ugg boot brand, sued over dupes of its ankle shearling boot.

This May, Deckers sued Costco over the same thing, claiming the retailer’s far cheaper Shearling slippers were a direct copy of the UGG equivalent.

Ali Watkins covers international news for The Times and is based in London.

The post Lululemon Sues Costco Over Selling ‘Dupes.’ What’s Behind the Case? appeared first on New York Times.

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