Lululemon Sues Costco for Selling Knockoff Products

Lululemon has filed a lawsuit against Costco, accusing the wholesale club of selling lower-priced duplicates of its popular athleisure clothing. The lawsuit, filed in the U.S. District Court for the Central District of California, alleges that Costco has unlawfully traded on Lululemon's reputation by selling unauthorized apparel that infringes on its patents.

Lululemon claims that Costco uses manufacturers of branded products for its Kirkland brand without disclosing the connection to consumers. This ambiguity may lead shoppers to believe that Kirkland products are made by the original supplier. Lululemon asserts that Costco does not clarify this.

A Lululemon spokesperson emphasized the company's commitment to protecting its intellectual property rights through legal action when necessary. Some of the duplicated products include Scuba hoodies, Define jackets, and ABC pants.

One example cited in the lawsuit is the Hi-Tec Men’s Scuba Full Zip, priced at $19.97 on Costco's website, while Lululemon sells similar jackets for over $100 each. Costco has not yet commented on the matter.

Lululemon is seeking a jury trial to stop Costco from selling the alleged duplicates and is also pursuing monetary damages. The company had a legal dispute with Peloton in 2021 but later formed a partnership with the fitness company.

According to the source: AP News.