Lululemon Sues Costco Over Selling 'Dupes' of Its Leggings
Lululemon is claiming Costco is selling knockoffs of its leggings, according to a lawsuit the company filed against the popular warehouse chain.
In the 49-page lawsuit, which was filed in the U.S. District Court for the Central District of California, Lululemon alleges that Costco is selling "knockoff, infringing versions" of its clothes. Lululemon leggings can run over $80 for a pair of yoga pants, while Costco's are closer to $20.
Related: The Founder of Lululemon Is Spending $100 Million to Try to Beat the Super Rare Disease That's Destroying His Muscles
Lululemon says Costco allows its customers to believe that its Kirkland leggings, among other products, are made by the same manufacturer as Lululemon, and therefore "unlawfully traded" on its "reputation, goodwill and sweat equity."
Rumors that Costco-sold items are made by the same manufacturer as Lululemon have been circulating online and on social media for years. Viral TikToks highlighting the deals have apparently not gone unnoticed by Lululemon.
"Indeed, one of the purposes of selling 'dupes' is to confuse consumers at the point-of-sale and/or observers post-sale into believing that the 'dupes' are Plaintiffs' authentic products when they are not," the lawsuit alleges, per CBS.
Lululemon details the similarities in design — and the dissimilarities in price — in the lawsuit. For example, Lululemon's Scuba hoodie sells for $118; Costco's version is around $19. The lawsuit claims several Costco-sold products are knockoffs, including the Danskin Ladies Half-Zip Hoodie; the Jockey Ladies Yoga Jacket; Spyder Women's Yoga Jacket; Hi-Tec Men's Scuba Full Zip; and Kirkland 5 Pocket Performance Pant.
Related: Costco Bulks Up Most Store Workers' Paychecks to More Than $30 an Hour. Here's Why.
"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," a Lululemon company spokesperson said in a statement, per the AP.
Costco has not yet commented, per ABC News and CBS.
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