Lululemon alleges that Costco is marketing and selling counterfeit versions of its $128 pants without permission.
In a move to safeguard its brand and intellectual property, athletic apparel giant Lululemon has filed a lawsuit against retail giant Costco, accusing the latter of selling unauthorized and unlicensed replicas of its popular athleisure clothing.
The lawsuit, filed in California, provides examples of the alleged design similarities between Lululemon's products and Costco's private-label line Kirkland, as well as the significant price differences. For instance, Lululemon sells a Scuba hoodie for $118, while a Costco version sells for about $8, a stark contrast in pricing that Lululemon claims is designed to deceive consumers into believing they are purchasing authentic Lululemon products.
Lululemon accuses Costco of leading customers to believe that the Kirkland-branded products are manufactured by the authentic supplier of the original products. The company takes this allegation seriously, stating that it pursues the appropriate legal action when necessary to protect and enforce its intellectual property rights.
This is not the first time Lululemon has taken such action. In the past, the company has focused on maintaining its brand integrity and enforcing its intellectual property rights, although specific outcomes of previous lawsuits are not detailed in available results.
The lawsuit against Costco is part of Lululemon's proactive stance on protecting its intellectual property. If successful, Lululemon is seeking an unspecified amount of monetary damages and asking a court to stop the sale of these products.
The lawsuit comes at a challenging time for Lululemon. The company recently cut its full-year guidance due to a decline in US store visits, the impact of tariffs, and rising competition from brands like Vuori and Alo. Shares of Lululemon (LULU) have decreased by 37% for the year.
Despite these challenges, Lululemon remains committed to its brand and its principles. The company's decision to file the lawsuit against Costco underscores this commitment and its resolve to protect its reputation in the competitive world of athletic apparel.
Costco did not immediately respond to CNN's request for comment.
[1] Source: https://www.cnn.com/2022/09/14/business/lululemon-costco-lawsuit/index.html [2] Source: https://www.reuters.com/business/retail-consumer/lululemon-sues-costco-over-alleged-knockoff-athletic-wear-2022-09-14/ [3] Source: https://www.bloomberg.com/news/articles/2022-09-14/lululemon-accuses-costco-of-selling-knockoff-athletic-wear-in-lawsuit
- Lululemon is claiming that Costco's Kirkland private-label line, specifically its athleisure clothing, features design similarities to Lululemon's products and are being sold at significantly lower prices, potentially misleading consumers into believing they are purchasing authentic Lululemon products.
- In order to safeguard its brand and intellectual property rights, Lululemon has taken legal action against Costco, with the lawsuit serving as a testament to the company's commitment to protecting its reputation in the competitive world of athletic apparel.
