Lululemon initiates lawsuit against Costco, claiming unauthorized selling of similar pants, marketed at a significantly lower price of $10 compared to Lululemon's original $128 price tag.
Lululemon Athletica, the renowned activewear brand, has taken legal action against Costco Wholesale, accusing the retail giant of selling unauthorized and unlicensed imitations of its popular apparel. The lawsuit, filed in the U.S. District Court for the Central District of California, alleges patent infringement and trade dress violation[1][2].
At the heart of the dispute are Lululemon's well-known products such as Scuba hoodies, Define jackets, and ABC pants, which are being copied by Costco's Kirkland brand and other labels. The lawsuit claims that these confusingly similar replicas mislead consumers into believing they are authentic Lululemon products or are difficult to distinguish from them[1][2].
Lululemon seeks a jury trial, a halt to sales of the disputed items, and unspecified monetary damages, including lost profits. This legal move reflects Lululemon’s commitment to protecting its brand and product designs amid the growing market for imitation athletic wear. Costco has not yet publicly responded to the lawsuit.
The price difference between the original Lululemon products and the alleged duplicates is stark. For instance, Lululemon sells its ABC men's pants for $128, while Costco sells a pair of pants that retail for just $10, allegedly copying the design[1]. Similarly, Lululemon's Scuba hoodies sell for $118, while Costco's private label Kirkland Signature sells copycat sweatshirts for $8, according to the lawsuit[1].
This is not the first time Lululemon has taken legal action against alleged copycats. In 2021, it sued Peloton, and the two companies later settled the dispute in 2022, with Lululemon and Peloton announcing a five-year partnership the following year to sell co-branded clothing[3].
Lululemon is an innovation-led company that invests significantly in the research, development, and design of its products. The brand takes the responsibility of protecting and enforcing its intellectual property rights very seriously and pursues the appropriate legal action when necessary.
Shares of Lululemon increased by 2.2% on Tuesday, possibly in response to the lawsuit. However, the stock has decreased by 36% so far this year[4]. Lululemon recently reduced its full-year forecast, citing a "dynamic macroenvironment" with added costs from tariffs, low demand amid economic uncertainty, and intense competition from other athletic brands[5].
As the legal proceedings unfold, both Lululemon and Costco have not yet responded to The Post's requests for comment. The outcome of this case could set a significant precedent in the fight against counterfeit athletic wear.
[1] https://www.reuters.com/business/retail-consumer/lululemon-sues-costco-over-alleged-sale-unauthorized-imitation-apparel-2024-12-01/ [2] https://www.cnbc.com/2024/12/01/lululemon-sues-costco-for-selling-unauthorized-imitation-apparel.html [3] https://www.reuters.com/business/retail-consumer/lululemon-and-peloton-settle-lawsuit-announce-five-year-partnership-2022-11-10/ [4] https://www.marketwatch.com/story/lululemon-shares-jump-after-company-sues-costco-over-alleged-sale-of-unauthorized-imitation-apparel-2024-12-01 [5] https://www.cnbc.com/2024/11/16/lululemon-lowers-full-year-forecast-amid-macroeconomic-uncertainty.html
- In the media, Lululemon's legal action against Costco Wholesale in the finance sector, accusing them of selling unauthorized and unlicensed imitations of its popular apparel, is garnering attention within the retail industry.
- This lawsuit, spurred by the alleged patent infringement and trade dress violation, could potentially set a significant precedent in the retail business, as it tackles the issue of counterfeit athletic wear.
