Lululemon sues Costco, accusing the retail giant of selling copycat versions of its well-known Align leggings. The lawsuit, filed in California federal court, alleges that Costco’s in-house Kirkland brand has launched leggings that closely mimic Lululemon’s popular designs from fabric to stitching to overall look and sold them at a much lower price.
This case puts the spotlight on design theft, the ethics of retail competition, and what happens when a luxury brand feels its intellectual property is being undercut by discount chains.
Let’s dive into what the lawsuit is about, what Lululemon is claiming, how Costco is responding, and why this legal face-off is drawing national attention.
What Is Lululemon Accusing Costco Of?
The lawsuit says that Costco is deliberately selling leggings that look and feel like Lululemon’s Align collection, one of the company’s best-selling product lines. According to Lululemon, these copycat leggings were not just “inspired” by their design they are nearly identical in several ways:
- Stitching and seam placement
- Waistband style and fabric stretch
- The overall fit and silhouette
- Use of similar materials for a ‘buttery-soft’ feel
Lululemon claims Costco knew exactly what it was doing taking advantage of Lululemon’s strong brand identity while undercutting its premium price point. Align leggings typically retail at $98, whereas the Kirkland version was reportedly sold for under $20.
This price difference, combined with design similarities, forms the crux of the case. Lululemon argues that Costco’s actions could confuse customers, damage the brand’s image, and cut into their profits.
The Legal Grounds for the Lawsuit
Lululemon’s complaint includes multiple legal accusations:
1. Trade Dress Infringement
This is the biggest one. “Trade dress” refers to the overall visual appearance of a product that signifies its source to consumers. Lululemon says the design of the Align leggings is so distinctive that customers immediately associate it with their brand.
By copying that look, Costco is allegedly violating Lululemon’s trade dress rights.
2. Unfair Competition
Lululemon claims Costco is unfairly competing by leveraging its designs without permission, which could confuse buyers and damage brand equity.
3. False Design Origin
The lawsuit also touches on the idea that consumers might mistakenly believe Costco’s leggings are somehow associated with or approved by Lululemon.
Costco’s Response: Silent So Far
As of now, Costco has not made an official public statement about the lawsuit. However, legal analysts suggest the retail giant may argue that the design of Lululemon’s leggings is not unique enough to warrant legal protection. Many leggings in the market share similar design features, so Costco may claim that it is simply offering a generic version — not an illegal copy.
Another possible defense: Costco did not use the Lululemon name or logo on the products, so there is no intentional misrepresentation.
Whether these defenses will hold up in court is something the legal system will have to decide.
Why This Lawsuit Matters
At first glance, this might seem like just another corporate squabble. But this lawsuit raises bigger questions about the fashion industry, intellectual property, and consumer behavior.
Here’s why it matters:
1. The Rise of “Dupes”
The term “dupe” (short for duplicate) has become a trend on platforms like TikTok and Instagram. Influencers regularly post about cheaper alternatives to luxury products, including Lululemon leggings. Some even recommend Costco’s leggings as the “perfect Lululemon dupe.”
This trend, while great for bargain hunters, creates a legal gray area for brands. When does a lookalike become a counterfeit? This case could set legal standards.
2. The Power of Branding
Lululemon is not just selling leggings — it’s selling a lifestyle, a community, and a premium experience. Costco’s copycats could dilute that image by making the product feel “common” or less exclusive.
If Costco wins, it may encourage more retailers to ride on the success of premium brands without legal consequences.
3. Design Protection Is Hard
Unlike logos or names, design features are harder to protect. The U.S. legal system doesn’t easily grant copyright or trademark protection to fashion designs unless they are very distinctive.
Lululemon’s case might push courts to think more carefully about how design laws apply to modern fashion.
A Brief History of Lululemon’s Legal Battles
This isn’t the first time Lululemon has taken legal action. In the past, it has sued competitors like Peloton and Under Armour for similar design issues.
- In 2021, Lululemon sued Peloton over its leggings, claiming they copied its design too closely.
- That case was settled out of court, suggesting that Lululemon often takes an aggressive stance to protect its brand.
This latest lawsuit shows that the company continues to see legal enforcement as a way to guard its design integrity.
Consumer Reaction: Mixed Opinions
The public response to the news that Lululemon sues Costco has been mixed. Some loyal Lululemon fans support the move, saying the brand has the right to protect its hard-earned image.
Others, especially budget-conscious shoppers, say this lawsuit attacks accessibility. If people can’t afford $98 leggings, why shouldn’t they have access to something similar for $18?
Here’s what’s being said online:
“Lululemon is just mad that Costco made better leggings for a quarter of the price.” – Twitter user
“Honestly, if Costco dupes feel just as good, why should I pay extra just for a logo?” – Reddit comment
“Lulu has every right to protect their designs. Dupes are fine until they cross the line into theft.” – Instagram comment
What’s Next in the Courtroom?
The lawsuit is currently in its early stages, and it may take months or even years to resolve. The court will have to consider:
- Are Lululemon’s designs distinctive enough for protection?
- Did Costco intentionally copy the design?
- Could the Kirkland leggings confuse buyers into thinking they’re Lululemon?
If the court sides with Lululemon, Costco may have to pay damages and pull the leggings from its shelves. But if Costco wins, it could change how brands approach “dupe culture” going forward.
Final Thoughts: Dupes vs. Design Theft
The lawsuit where Lululemon sues Costco is more than just a battle over leggings. It reflects the larger debate between premium brands and affordable retail. As consumers grow savvier and social media fuels trends for cheaper alternatives, the line between inspiration and imitation gets blurrier.
This case could set a precedent for how the law views fashion design in an era where “dupes” dominate e-commerce and social media.
Whether you side with Lululemon’s brand protection or Costco’s accessibility approach, one thing’s clear — this isn’t just about leggings. It’s about what fashion means in 2025.
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