Dupe Culture on Trial: Lululemon Slams Costco for Selling ‘Knockoff’ Yoga Gear

Lululemon has filed a landmark lawsuit against Costco, alleging the wholesale retailer is selling unauthorised replicas of its premium athleisure designs, sparking a heated debate over intellectual property rights in the age of viral social media "dupes".

Long Story, Cut Short
  • Lululemon is suing Costco for allegedly selling design imitations of its popular athletic wear, with stark price differences fuelling consumer demand for these alternatives.
  • The lawsuit highlights growing tensions between premium brands and retailers capitalising on social media-driven "dupe culture" that celebrates affordable alternatives to luxury items.
  • The case could establish crucial legal precedents for fashion industry intellectual property protection, potentially reshaping how brands defend their designs against copycat products.
Premium yoga wear giant Lululemon's case against wholesale powerhouse Costco represents more than a simple trademark dispute; it embodies the broader tension between accessibility and exclusivity that is reshaping the modern retail landscape.
intellectual property rights Premium yoga wear giant Lululemon's case against wholesale powerhouse Costco represents more than a simple trademark dispute; it embodies the broader tension between accessibility and exclusivity that is reshaping the modern retail landscape. Pexels / Pixabay

The athleisure industry's most anticipated legal battle has arrived, pitting premium yoga wear giant Lululemon against wholesale powerhouse Costco in a case that could fundamentally alter how fashion brands protect their intellectual property. Filed on 27 June 2025 in California federal court, the lawsuit alleges that Costco is deliberately selling products that visually mimic Lululemon's signature designs, capitalising on the Canadian company's reputation while offering dramatically cheaper alternatives.

This legal dispute arrives at a cultural inflection point where consumers actively seek affordable alternatives to luxury items through viral social media campaigns. The phenomenon, known as "dupe culture," has transformed purchasing decisions, prioritising the achievement of high-end aesthetics over brand loyalty or authenticity. The case represents more than a simple trademark dispute; it embodies the broader tension between accessibility and exclusivity that is reshaping the modern retail landscape.

The Legal Battle Unfolds

The comprehensive legal filing reveals the extent of Lululemon's concerns about Costco's alleged infringement of its intellectual property rights. The lawsuit specifically targets six products sold by the wholesale retailer, including the Kirkland Signature 5 Pocket Performance Pant and various jackets and hoodies from brands such as Danskin, Jockey, Spyder, and Hi-Tec. Lululemon's legal team argues that these products constitute trade dress infringement, a complex area of intellectual property law that protects the distinctive visual appearance of products that signifies their source to consumers.

The allegations extend beyond mere visual resemblance to encompass what Lululemon describes as deliberate consumer deception. The company claims that some customers mistakenly believe Costco's products are authentic Lululemon items, while others purchase them precisely because they are nearly indistinguishable from the originals. This dual-pronged approach to consumer confusion, according to the lawsuit, demonstrates the calculated nature of Costco's alleged infringement.

The legal timeline reveals escalating tensions. Lululemon had previously sent a cease-and-desist letter to Costco in November 2024 regarding the alleged violations. Initially, Costco appeared to comply by removing some products from its shelves. However, according to the complaint, the retailer subsequently resumed selling similar items, suggesting a deliberate decision to continue what Lululemon characterises as infringing behaviour despite formal legal warnings.

The lawsuit also addresses precise colour replication, with Lululemon claiming that Costco duplicated its distinctive "Tidewater Teal" shade, a popular colour that has become synonymous with the brand's aesthetic identity. This attention to specific colour matching demonstrates the sophisticated level of alleged copying that extends beyond basic design elements to encompass the precise visual characteristics that make Lululemon products instantly recognisable.

Lululemon's legal demands are comprehensive: monetary compensation for lost profits, alternative royalty payments, and crucially, a court order barring Costco from producing or selling further imitations. They also request removal of any advertisements featuring the allegedly infringing products, aiming to eliminate both the products themselves, and any marketing that might perpetuate consumer confusion.

Key Products Named
  • Kirkland Signature 5 Pocket Performance Pant (allegedly copying Lululemon's ABC pants)
  • Danskin Half-Zip Pullover (allegedly copying Lululemon's Scuba hoodie design)
  • Jockey Ladies Yoga Jacket (part of the six products specifically mentioned in court filing)
  • Spyder Women's Yoga Jacket (included in trade dress infringement allegations)
  • Hi-Tec Men's Scuba Full Zip (allegedly mimicking Lululemon's signature hoodie styles)
Timeline of Legal Action
  • November 2024: Lululemon sends cease-and-desist letter to Costco regarding alleged infringement
  • November 2024: Costco initially removes some products following Lululemon's legal warning
  • Early 2025: Costco resumes selling similar products, according to Lululemon's complaint
  • 27 June 2025: Lululemon files comprehensive lawsuit in California federal court
  • July 2025: Both companies' stock prices remain relatively stable despite ongoing legal proceedings
Price Comparisons
  • Scuba hoodie: Lululemon £99-£118 vs Costco's Danskin Half-Zip Pullover £8 (90% savings)
  • ABC pants: Lululemon £128 vs Costco's Kirkland Performance Pant £10 (92% savings)
  • Define jackets: Lululemon premium pricing vs Costco's various branded alternatives under £15
  • Yoga jackets: Lululemon's high-end pricing vs Costco's Jockey alternatives at significant discounts
  • "Tidewater Teal" colour: Lululemon's signature shade allegedly copied across multiple Costco products
Economics of Dupe Culture
  • Global fashion industry loses billions annually to counterfeiting and design copying
  • Social media hashtags like #LululemonDupes generate millions of views and drive consumer behaviour
  • TikTok influencers regularly promote affordable alternatives to luxury fashion items
  • Younger consumers increasingly prioritise "look for less" over brand prestige and authenticity
  • Premium brands face pressure to innovate rapidly or risk losing market share to copycat products
This case illuminates the evolving relationship between traditional retail models and contemporary consumer expectations.
brand differentiation This case illuminates the evolving relationship between traditional retail models and contemporary consumer expectations. Costco's alleged strategy of creating Kirkland-branded alternatives to popular products represents a sophisticated approach to private label development that challenges conventional notions of brand differentiation. This approach capitalises on consumer awareness of dupe culture whilst potentially providing legal cover through different brand names and manufacturing partnerships. Complaint – U.S. District Court Central District of California

The Rise of "Dupe Culture" and Social Media Impact

The Lululemon-Costco dispute cannot be understood without examining the broader cultural shift that has made "dupe culture" a dominant force in contemporary fashion consumption. Social media platforms, particularly TikTok, have transformed how consumers discover and share information about affordable alternatives to luxury items. Hashtags such as #LululemonDupes have generated millions of views, with influencers and ordinary consumers alike celebrating their ability to achieve premium aesthetics at a fraction of the original cost.

This phenomenon represents a fundamental shift in consumer values, where traditional brand prestige has been supplanted by the satisfaction of securing "a look for less." The speed at which imitations now reach the market has accelerated dramatically, with near-instantaneous knockoffs appearing before original trends have peaked. This acceleration is largely attributed to social media's ability to disseminate fashion trends globally within hours.

The psychological aspects of dupe culture reveal complex consumer motivations that extend beyond simple price sensitivity. Many consumers express pride in their ability to identify and acquire convincing alternatives to expensive items, viewing this skill as a form of savvy consumerism rather than a compromise. This shift has been amplified by economic pressures and changing attitudes towards luxury consumption, particularly among younger demographics who have grown up with social media-driven fashion trends.

However, this cultural shift raises important questions about creativity and fair competition. When original designs can be rapidly copied and sold at dramatically lower prices, the economic incentives for investing in research, development, and creative design processes are fundamentally undermined. This creates a potential race to the bottom where innovation is discouraged in favour of rapid replication.

Broader Implications for Fashion and Retail

The outcome of this lawsuit will likely reverberate throughout the fashion industry, potentially establishing crucial precedents for how intellectual property rights are interpreted and enforced in the digital age. The case highlights the complex legal challenges facing premium brands as they attempt to protect their designs against increasingly sophisticated copying techniques.

If Lululemon succeeds, it could embolden other luxury and premium brands to pursue more aggressive litigation strategies against retailers selling similar products. Conversely, a loss might signal that legal recourse offers limited protection against the dupe phenomenon, forcing brands to explore alternative strategies for maintaining competitive advantages.

The impact on smaller designers and independent brands could be particularly significant, as these entities typically lack the financial resources necessary to pursue extensive legal battles against large retailers. The normalisation of dupe culture disproportionately affects emerging designers who rely on the uniqueness of their creations to establish market presence and build customer loyalty.

The case also illuminates the evolving relationship between traditional retail models and contemporary consumer expectations. Costco's alleged strategy of creating Kirkland-branded alternatives to popular products represents a sophisticated approach to private label development that challenges conventional notions of brand differentiation. This approach capitalises on consumer awareness of dupe culture whilst potentially providing legal cover through different brand names and manufacturing partnerships.

The international implications should not be overlooked, as intellectual property enforcement varies significantly across jurisdictions. Success for Lululemon in the United States might encourage similar legal actions globally, whilst potentially influencing how international trade agreements address design protection in the fashion sector.

PR Strategy and Market Reactions

As this legal battle unfolds, both companies have taken measured approaches to public relations management. Lululemon has emphasised its commitment to protecting intellectual property rights, stating that "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." Meanwhile, Costco has maintained silence on the matter, declining to provide public commentary on the allegations.

The financial markets have responded with relative calm, with both companies experiencing minimal stock price fluctuations. This measured response suggests that investors view the legal proceedings as manageable business risks rather than existential threats. However, the long-term implications of the case outcome could still significantly impact both companies' strategic directions and market positioning.

If Lululemon succeeds, it could embolden other luxury and premium brands to pursue more aggressive litigation strategies against retailers selling similar products. Conversely, a loss might signal that legal recourse offers limited protection against the dupe phenomenon, forcing brands to explore alternative strategies for maintaining competitive advantages.

 
 
  • Dated posted: 3 July 2025
  • Last modified: 3 July 2025