See, one brand copying and selling another brand’s products isn’t something new; we have quite literally seen that time and again. Right? Well, this is the same case with the Lululemon Costco Lawsuit, where it is actually Lululemon accusing Costco of copying their product and selling it at a much lower price point because of the degraded quality that they’re offering. And Lululemon is worried that over time, this low quality will be associated with their brand name, even though they’re the ones who are selling the original items. So let’s get to the details of this case and see where things stand now.
What’s the Issue Between Lululemon and Costco?
Lululemon claims that Costco is duplicating the appearance and texture of their garments and vending like fabrics with different labels at significantly lower prices. Lululemon further states that the primary reason behind the loss of its brand’s reputation is that of misleading customers. Their brand, which is recognized for quality and fashion-conscious sportswear, is getting weaker due to counterfeit products.
On the other hand, Costco is offering the same kind of products at a fraction of the price, and Lululemon is not happy about it.
The issue isn’t that complicated: what would happen if people began connecting cheaper products with Lululemon’s designs? It could influence the way the customers of the company think about their high pricing and the whole brand value.
When Did All This Start?
On June 27, 2025, Lululemon initiated legal action in California by filing a complaint that was there. Large news channels such as CNN, CBS, and USA Today reported the story within days.
The brand explains that the issue is not merely money; however, money is one of the aspects, they are also concerned about the security of their designs, brand identity, and the work that goes into making their products.
Not only that, they have highlighted that in addition to the design elements, Costco also went down to the very color of the product, that is, Tidewater Teal, which is considered by them to be nothing but a Lululemon hallmark that was used.
What Clothing Items Are Involved?
Lululemon has listed three specific items in the lawsuit that they believe Costco has copied. Here’s a quick comparison:
Scuba Hoodie
- Lululemon Price: $118
- Costco Version: Danskin Pullover for $8
Define Jacket
- Lululemon Price: $128
- Costco Alternatives: Jockey or Spyder Jackets at $22
ABC Men’s Pants
- Lululemon Price: $128
- Costco’s Kirkland Version: $10
There are such huge differences in prices, and that’s exactly why Lululemon is pointing it out. They are worried that buyers will think the two products are of similar quality without them being so.
What Is Lululemon Suing For?
Lululemon, in court, claims that Costco has committed “trade dress infringement.” What this implies is that the products of Costco are so similar to those of Lululemon that buyers can easily assume they come from the same company.
Such confusion, for instance, can damage a company, which is a particular brand that is mainly known by its image, good reputation, and customers’ trust.
So, what’s Lululemon asking for? Two things:
- Costco should immediately stop selling these lookalike products.
- Compensation for lost sales and any damage to Lululemon’s brand.
What Has Costco Said So Far?
Costco has not divulged a lot of information regarding the lawsuit at this time. However, one thing you shouldn’t overlook is that Costco’s Kirkland Signature brand is a giant, that’s for sure. Just about everything you use from the house, including food, clothes, electronic devices, and so on, must have been under the brand. The brand came in about $86 billion just this year.
Kirkland’s plan is partly to provide items similar to the popular brands at lower prices. But the thing is, Lululemon does not agree with this argument and is of the opinion that Costco has overstepped its bounds with such a move.
