Lululemon is suing Costco, alleging that the discount wholesaler is selling dupes of its $128 pants and other expensive athleisure clothing. In a lawsuit filed on Friday, Lululemon said Costco and their Kirkland brand has “unlawfully traded” on the athleisure brand’s “reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel employing knockoff, infringing versions” of its products.
One example in the lawsuit shows that Lululemon sells a Scuba hoodie for $118, while Costco’s version sells for about $8.