With unpredictable news affecting consumer perceptions of the economy and young people facing an uncertain job market, many are looking to save money. On social media, influencers often promote ‘dupes,’ or products similar to more expensive name-brand offerings, as budget-friendly alternatives. While many of these products are not truly counterfeit items which falsely use the branding of another company, they could still pose legal problems for their makers.
Last week Lululemon sued Costco for selling athleisure gear that is too similar to its own. According to the details of the case, Costco is accused of trading on “Lululemon’s reputation, goodwill and sweat equity” by selling several items with virtually identical designs to its own products. But isn’t copying off the runway standard practice in fashion? Some legal experts are skeptical of the merits of the case, because Lululemon would likely have to show that a patented design was copied or that Costco’s products created confusion among customers.
Because many of the design elements in these products are generic or functional in nature, the second issue may be more likely in this lawsuit. Lululemon’s case highlights a consumer perception that Costco uses the identical manufacturers as the name brands for products in its Kirkland brand, and thus customers might think they were getting an authentic Lululemon item without the branding. It notes that Costco did nothing to dissuade purchasers of this notion. Confusion about whether this could be ‘the real thing’ might be greater here than in most cases.
What about the timing? In 2024 Lululemon faced a slowdown in its sales growth and is restructuring its business. And the popularity of ‘dupes’ online continues to grow. Some influencers mention the company by name and give details about where to buy similar options for a fraction of the price. Increasingly, consumers may be willing to buy this type of knock-off which might have prompted this legal action.
But this is not the first time Lululemon has gone after a competitor for copying its designs. In 2021, Peloton was the target. The case was settled with Peloton agreeing to discontinue some designs and even signing up Lululemon as the official partner for its athletic wear.
Will Lululemon prevail in this instance too?
Activities:
- Ask students: Do you see lots of ‘dupes’ on social media? Do you suspect Costco versions of products may be closer to the real thing than dupe products from elsewhere?
- Have students look up “Costco Dupes” or “Lululemon Dupes” on their social media. This is an example from TikTok: https://www.tiktok.com/@kendraford_/video/7317785665272319278. Do posts like these influence your purchase intentions?
- Ask students to form small groups and choose a favorite ‘dupe’ of a popular product. Create a short video review, influencer-style, focused on similarities and differences between the products. Do you think the producer of the ‘dupe’ could be subject to a similar lawsuit?
Sources: Grantham-Philips, Wyatte and D’Innocenzio, Anne, (02 Jul 2025) Lululemon’s lawsuit against Costco highlights the rise of fashion ‘dupes,’ APnews.com. Zimmerman, Haley and Hart, Connor, (01 Jul 2025) Lululemon Sues Costco Over Alleged Knockoff Activewear, Wall Street Journal.
