Lululemon's lawsuit against Costco highlights the rise of fashion ‘dupes'

The Hill

a day ago

NEW YORK (AP) — Fashion 'dupes,' or less expensive versions of high-end clothing and other accessories, are just about everywhere these days. They're also drawing some businesses into legal battles.
In the latest example, Lululemon slapped a lawsuit against Costco on Friday, accusing the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure apparel.
Across the retail industry, it's far from a new phenomenon. But social media is pushing the culture of online dupe shopping to new heights as influencers direct their followers to where they can buy the knockoffs. Want a taste of Hermès' $1,000 fuzzy slippers? Target has a version for $15. Looking for a $2,800 price Bottega Veneta hobo bag? There's a version for $99 on online clothing and accessories upstart Quince, which has become a go-to for fashionistas.
It's not even the first time Lululemon has encountered what it says are knockoffs of its clothing, which often carry steep price tags of over $100 each for leggings and sporty zip-ups. Without specifying additional sellers beyond Costco in Friday's complaint, Lululemon noted that a handful companies have 'replicated or copied' its apparel to sell cheaper offerings — including those popularized online through hashtags like 'LululemonDupes' on TikTok and other social media platforms.
For years, marketers have rolled out less expensive fashion and beauty alternatives for consumers to buy instead of pricey designer brands. Unlike more traditional counterfeits, which are illegal copies of the product that feature an unauthorized trademark or logo of a patented brand, 'pure' dupes that resemble certain features of more expensive products are generally legitimate. They can even spark awareness of the original items.
But the rising frenzy for dupes signals that many shoppers want a taste of luxury, but no longer want to pay for (or care about) getting the real thing.
Late last year, for example, discount chain Walmart created a buzz when it started selling a leather bag online that resembled Hermès' coveted Birkin bag. The $78 item — sold by Kamugo, which doesn't appear to have its own website — was a fraction of the price of the original, which goes from $9,000 to hundreds of thousands of dollars on resale and auction sites. Influencers labeled the leather bag a 'wirkin.' Other suppliers including BESTSPR, YMTQ and Judy were listed on Walmart's site selling similar totes.
Experts say some dupes move into shaky legal territory, including copyright and trademark infringement, particularly when a dupe marketer makes false claims about the duplicate or the original.
Look-alikes can also frustrate the targeted companies.
Following the viral fame of the 'wirkin,' for example, Hermès Executive Chairman Axel Dumas said he was 'irritated' and 'annoyed' by the cheaper look-alikes.
'Making a copy like this is quite detestable,' Dumas said in a corporate earnings call in February. Still, he acknowledged that it was 'quite touching' to see so many consumers want a bag with the Birkin style — and that 'difference in quality' was still evident, noting that nobody bought the dupe thinking it was from Hermès.
Meanwhile, Benefit sued E.l.f. for trademark infringement over its $6 Lash 'N Roll mascara, which is similar to Benefit's $29 Roller Lash mascara. But in December, a California judge found that E.l.f.'s mascara didn't deceive shoppers and didn't infringe the trademarks and trade dress of Benefit's item.
That was the first lawsuit of its kind in E.l.f.'s 20-year-history, and the judge's decision was 'a resounding win for us,' CEO Tarang Amin previously told The Associated Press.
Amin doesn't like to call his version dupes, referring to them as 'holy grails' instead. 'The basic reality is we always put our E.l.f. twist on it,' he said. 'It's an E.l.f. product that's a much better value.'
In its lawsuit, Lululemon argued that Costco had 'unlawfully traded' on Lululemon's reputation and that it was suing as part of wider intellectual property enforcement 'directed to retailers who have chosen to copy rather than compete.'
A message was left Tuesday seeking comment from Costco on the lawsuit.
The litigation could be more complicated because Lululemon also alleges that customers know Costco uses manufacturers of popular branded products for its private label Kirkland brand, although the companies involved don't reveal that information. Due to this, Lululemon claims at least some shoppers may believe that Kirkland-branded products are made by the authentic supplier of the 'original' products.
Lululemon accuses Costco of making duplicates of several producings, including its popular Scuba hoodies, Define jackets and ABC pants. Lululemon says one of the duplicates that Costco sells is the Hi-Tec Men's Scuba Full Zip, with the lawsuit showing a screenshot image of Costco's website showing the item priced at $19.97.
Lululemon found itself in a similar dispute with Peloton back in 2021, when it sued the exercise bike company over alleged 'copycat products' in its then-new clothing lines. Two years later, the companies announced a five-year partnership that included Lululemon becoming the primary athletic apparel partner to Peloton.
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AP Business Writer Michelle Chapman contributed to this report.