Lululemon sues Costco for selling cheap dupes…but now everyone wants the $19 pants
Lululemon has filed a lawsuit against Costco, alleging that its Kirkland Signature brand is selling knockoff versions of the athleisure giant’s signature products at a fraction of the price. The suit references viral TikToks with the hashtag #lululemondupes as proof of brand confusion and financial harm. But the backlash online is already painting this legal move as a PR disaster, with dozens of shoppers newly discovering Costco’s cheaper alternatives...thanks to Lululemon.
Lululemon v. Costco
Lululemon filed the lawsuit against Costco in California on June 27. Specifically, the company accused its competitor of ripping off its Scuba hoodies and sweatshirts, Define jackets, and ABC pants.
The accuser included side-by-side images of the products in question in their 49-page filing. Lululemon compared the ABC pants for men, priced at $128, to Kirkland Signature brand pants priced at just $19.90.
"There is even a hashtag 'LululemonDupes' on social media platforms such as TikTok that social media influencers use when promoting these copycat products," the company pointed out.
That point is indeed true. The TikTok hashtag holds 5,211 posts under its belt as of June 30. However, the strong majority of the most popular videos feature "dupes" (short for duplicates) from Amazon rather than Costco.
Still, there are Costco videos out there. User @shopclubcostco posted a video on June 7 showing Danskin bike shorts at Costco and comparing them to Lululemon items but "without the $100 price tag."
@shopclubcostco @Costco Wholesale has Lululemon align biker short dupes in a 2 pack!!! Only 13.99 online right now for 2 pairs!! By @Danskin #costcofinds #lululemondupe #aligndupe #bikershorts #thebestbikershorts ♬ Typing sound (keyboard) 1 minute(1006555) - LEOPARD
Lululemon has benefited from similar lawsuits in the past. Two years after suing Peloton in 2021, the two companies entered a partnership to sell branded athletic wear. Costco is well known for partnering with other companies and allowing them to sell under the Kirkland Signature brand as long as they meet certain standards.
The athleisure company could clearly use the boost. Its stock price is down 37 percent this year.
"This makes me want to go to Costco"
Lululemon might want to jump on such a partnership opportunity. Otherwise, news of this lawsuit might hurt their profits even more.
On X, where the story spread over the weekend, there were quite a few users who apparently didn't know about the alleged Costco dupes. Now that they know, they're eager to make a trip to the closest warehouse.
"This makes me want to go to Costco and buy some clothes," said user @CeyonceLooms. "Lu Lu should have stayed quiet cus I was saving up to go there."
"I may need to stop by my local Costco this afternoon," wrote @phenom876 in response to a headline.
Even those who aren't already hopping into their cars largely seem to be on Costco's side. The big-box store has been a reliably affordable option for millions of Americans for decades and gained strong loyalty as a result. Lululemon, on the other hand, gets accused of letting their quality slip while increasing prices.
"Let me get this right," said @soultrekkin. "Lululemon is mad at Costco because they’re making similar items at affordable prices for people? GTFOH Lululemon $128 for a pair of leggings and they’re increasing prices on items here soon."
"Companies are allowed to sell their own brand of clothing (like Kirkland Signature)," @OhHey_ItsRay argued. "Costco isn't marketing them as Lululemon products, because they aren't. This is a frivolous suit. I hope $LULU fails spectacularly and that there is a big shake up in leadership after they lose millions of dollars from this epic mistake."
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