Lululemon sues Costco for selling alleged dupes of its products
A lawsuit filed in a California court recently alleges Costco sells dupes of Lululemon's Scuba hoodies and sweatshirts, Define jackets and ABC pants.
Some of the alleged fakes Vancouver-based Lululemon identified are sold under Costco's private label Kirkland, but others are made by manufacturers Danskin, Jockey and Spyder.
'Some customers incorrectly believe these infringing products are authentic Lululemon apparel while still other customers specifically purchase the infringing products because they are difficult to distinguish from authentic Lululemon products, particularly for downstream purchasers or observers,' the lawsuit says.
Lululemon alleges these scenarios take advantage of patents it holds, as well as the reputation and goodwill it has built with customers.
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1:23
Canada's Competition Bureau is investigating Lululemon
In its 49-page court filing, Lululemon says it tried to address the dupes by sending Costco cease and desist letters but is now asking a court to step in.
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Lululemon has requested the matter be heard by a jury trial, which it wants to order Costco to cease manufacturing, importing, marketing and selling the alleged dupes.
It also wants the Washington-based retailer to remove any instances where it was advertising alleged dupes online or in print and is asking the court to require Costco to cover any lost profits Lululemon incurred from the products.
Costco did not immediately respond to a request for comment. It has yet to file a response to Lululemon's lawsuit.
Dupes have become incredibly popular in recent years as shoppers looked to cope with inflation and a global trade war by seeking products mimicking the originals made by name brands.
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The phenomenon has gained traction online in particular, with social media accounts sharing the best dupes they've found.
While knock-off cosmetics are especially popular, Lululemon has also become a target because it sells its athletic wear at higher prices, which some customers find unattainable.
The lawsuit comes weeks after Lululemon said it would try to weather new and possibly incoming tariffs with price increases that will be 'modest in nature' and applied only to a 'small' portion of its products.
The brand has been working to bounce back from a lack of newness that disappointed consumers last year and earlier this year.
Newness — how fresh a brand's products and styles appear to consumers — is one of the key ways retailers draw in customers.
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Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account or Sign in without password View more offers Article content That means Wojcicki's nonprofit TTAM Research Institute will purchase 'substantially all' of San Francisco-based 23andMe's assets for $305 million. The transaction — which arrives more than three months after 23andMe filed for Chapter 11 bankruptcy — is set to officially close in the coming weeks. Article content tap here to see other videos from our team. Try refreshing your browser, or Anne Wojcicki's nonprofit gets court approval to buy 23andMe for $305 million Back to video tap here to see other videos from our team. Try refreshing your browser, or Play Video Article content 'I am thrilled that TTAM will be able to build on the mission of 23andMe to help people access, understand and benefit from the human genome,' Wojcicki said in a statement Monday — later adding that, 'the future of health care belongs to all of us.' The sale, which was approved by U.S. Bankruptcy Judge Brian C. Walsh on Friday, marks the end of a monthslong bidding war between TTAM and Regeneron Pharmaceuticals — a biotech company that had previously agreed to buy most of 23andMe's assets for $256 million in May. But Wojcicki's nonprofit later topped that offer, winning the final round of bidding held last month. Your Midday Sun Your noon-hour look at what's happening in Toronto and beyond. There was an error, please provide a valid email address. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Your Midday Sun will soon be in your inbox. Please try again Article content Advertisement 3 Story continues below This advertisement has not loaded yet, but your article continues below. Article content Under the deal, TTAM will acquire 23andMe's signature 'Personal Genome Service' provided through the company's saliva-based DNA testing kits — as well as research operations and its Lemonaid Health subsidiary, a telehealth services provider that 23andMe previously planned to wind down. Wojcicki had worked to take 23andMe private for some time. With the company struggling to find a profitable business model since going public in 2021, she's maintained that it would operate better outside market pressures. But that endeavor proved to be tumultuous — notably in September of last year, when all of 23andMe's independent directors resigned from its board citing a 'clear' difference of opinion with Wojcicki on the company's future following drawn-out negotiations. Advertisement 4 Story continues below This advertisement has not loaded yet, but your article continues below. Article content Leading up to 23andMe's March bankruptcy filing, subsequent efforts from Wojcicki to acquire the company were unsuccessful. And when 23andMe filed for Chapter 11 in late March, Wojcicki resigned as CEO — noting at the time that she was stepping down to be 'in the best position' as an independent bidder. Now that Wojcicki's nonprofit will acquire 23andMe, it's unclear whether the co-founder will step back into the CEO seat. But despite stepping down from the top post months ago, Wojcicki has remained on the company's board throughout the bankruptcy process. 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