Lululemon Files Lawsuit Against Costco, Says They're 2025

Lululemon Files Lawsuit Against Costco, Says They’re Selling Lookalike Activewear

pic credit: Design Taxi Community

In a new legal battle making headlines across the retail world, Lululemon—the premium athletic apparel brand—has filed a lawsuit against Costco, accusing the wholesale giant of selling lookalike “dupe” leggings that allegedly infringe on its intellectual property. The case shines a spotlight on the growing tension between high-end brands and budget retailers, especially in the booming activewear industry.

Here’s everything you need to know about the lawsuit, why it matters, and how it could impact both companies—and shoppers.

What’s the Lawsuit About?

According to court documents filed by Lululemon Athletica, the company claims that Costco has been selling “knockoff” leggings that closely resemble Lululemon’s well-known Align line—its best-selling yoga and fitness leggings.

Lululemon alleges that these Costco leggings mimic the style, stitching, and overall aesthetic of the Align pants, which retail for around $98. In contrast, Costco’s version reportedly sells for under $30, making it a much more affordable option for shoppers.

The lawsuit claims that Costco is intentionally marketing its products to confuse customers, capitalizing on Lululemon’s reputation for premium quality, fit, and performance.

https://www.nytimes.com/2025/07/01/us/lululemon-costco-dupes-lawsuit.html

Key Legal Accusations

Lululemon’s complaint includes several serious accusations, such as:

Trade Dress Infringement: Lululemon argues that the design elements of its leggings, such as the fabric texture, silhouette, waistband, and stitching, are all signature to its brand—and that Costco’s products mimic these too closely.
False Advertising: The brand also accuses Costco of misleading consumers into thinking they’re purchasing Lululemon-like quality at a fraction of the price.
Unfair Competition: By allegedly copying Lululemon’s designs without permission, Costco is accused of gaining an unfair advantage in the marketplace.

Lululemon is seeking damages and a permanent injunction to stop Costco from selling the disputed products.

Why This Matters

The lawsuit isn’t just about a pair of leggings. It’s part of a larger industry trend where luxury or premium brands are increasingly protecting their designs against so-called “dupes” (short for duplicates).

While budget-friendly versions of expensive products are not new, brands like Lululemon are drawing the line when these knockoffs start affecting their brand image and revenue. Especially when consumers believe they are getting a similar product—when in fact, they’re not.

This legal action also underscores how important brand identity and product design are in today’s fashion and retail landscape. For companies like Lululemon, whose loyal customer base values quality and performance, even a lookalike product can be seen as a threat.

What Costco Says

As of now, Costco has not made a public comment on the lawsuit. However, legal experts believe the company will likely argue that its products are generic and not direct copies of Lululemon’s designs.

Costco may also try to defend its practices under “fair competition” laws, which allow companies to sell similar—but not identical—products, as long as they don’t intentionally mislead consumers.

Pic credit: The new york times

Impact on Shoppers

For everyday shoppers, this lawsuit could have a couple of outcomes:

If Lululemon wins, it may set a precedent that makes it harder for retailers to sell lookalike or “dupe” products. That could limit the availability of cheaper alternatives in the future.
If Costco wins, it could signal that retailers can continue offering similar styles at lower prices—as long as they don’t explicitly pretend to be the original brand.

In the short term, this lawsuit has also sparked more consumer curiosity. Searches for “Lululemon dupes” and Costco’s activewear are trending online, which could ironically boost both brands’ visibility.

A Growing Pattern in Fashion

Lululemon’s lawsuit isn’t the first of its kind. Other major brands like Nike, Adidas, and even luxury labels like Gucci have taken legal action against companies selling copycat versions of their products.

This reflects a growing concern in the fashion industry where brand integrity and unique designs are more important than ever—especially in the social media era, where influencers often promote affordable “dupes” to millions of followers.

Final Thoughts

As this legal drama unfolds, all eyes are on how Costco will respond—and what the courts decide. Whether you’re a loyal Lululemon fan or a bargain hunter at Costco, the outcome of this lawsuit could impact how athletic and fashion wear is priced, marketed, and protected in the future.