Lululemon's Lawsuit Against Costco Highlights Rise of Fashion 'Dupes'

FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
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Lululemon's Lawsuit Against Costco Highlights Rise of Fashion 'Dupes'

FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)
FILE - Lululemon signs are displayed outside a retail location in the Seaport District, Dec. 13, 2024, in Boston. (AP Photo/Charles Krupa, File)

Fashion “dupes,” or less expensive versions of high-end clothing and other accessories, are just about everywhere these days. They're also drawing some businesses into legal battles.

In the latest example, Lululemon slapped a lawsuit against Costco on Friday, accusing the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure apparel.

Across the retail industry, it’s far from a new phenomenon. But social media is pushing the culture of online dupe shopping to new heights as influencers direct their followers to where they can buy the knockoffs. Want a taste of Hermès' $1,000 fuzzy slippers?

Target has a version for $15. Looking for a $2,800 price Bottega Veneta hobo bag? There’s a version for $99 on online clothing and accessories upstart Quince, which has become a go-to for fashionistas.

It's not even the first time Lululemon has encountered what it says are knockoffs of its clothing, which often carry steep price tags of over $100 each for leggings and sporty zip-ups. Without specifying additional sellers beyond Costco in Friday’s complaint, Lululemon noted that a handful companies have “replicated or copied” its apparel to sell cheaper offerings — including those popularized online through hashtags like “LululemonDupes” on TikTok and other social media platforms.

Dupes aren't new For years, companies have rolled out a range of cheaper option for consumers to buy instead of pricey name-brands or designer labels — often through retailers' house or generic brands. Unlike more direct copies of the product with an unauthorized trademark or logo of a patented brand, “pure” dupes that just resemble certain features are generally legitimate. They can even spark awareness of the original items.

But the rising frenzy for dupes, particularly in the fashion space, signals that many shoppers want a taste of luxury, but no longer want to pay for (or care about) getting the real thing.

Late last year, for example, discount chain Walmart created a buzz when it started selling a leather bag online that resembled Hermès’ coveted Birkin bag. The $78 item — sold by Kamugo, which doesn’t appear to have its own website — was a fraction of the price of the original, which goes from $9,000 to hundreds of thousands of dollars on resale and auction sites. Influencers labeled the leather bag a “wirkin.” Other suppliers including BESTSPR, YMTQ and Judy were listed on Walmart’s site selling similar totes.

While popular among shoppers, these kind of look-alikes can frustrate the targeted companies. Following the viral fame of the “wirkin,” Hermès Executive Chairman Axel Dumas shared his annoyance, for example.

“Making a copy like this is quite detestable,” Dumas said in a corporate earnings call in February. Still, he acknowledged that it was “quite touching” to see so many consumers want a bag with the Birkin style — and that “difference in quality” was still evident, noting that nobody bought the dupe thinking it was from Hermès.

When dupes venture into uncertain legal territory Alexandra Roberts, a professor of law and media at Northeastern University, said that “the term ‘dupe’ itself doesn’t tell us much about legality," noting the word has also been used to describe more traditional counterfeits.

But overall, dupes can move into shaky legal territory, including copyright and trademark infringement, particularly if a dupe marketer makes false claims about the duplicate or the original.

“With fashion, in particular, we’re going to get into some thorny questions," Roberts said. That includes what intellectual property rights exist and how enforceable they are, she explained, and whether there is actual infringement or if a product is just “positioning itself as a less expensive alternative.”

Often such disputes boil down trademark questions around consumer confusion or patented product designs. Several businesses have already put this to the test, but not always successfully.

In December, for example, Benefit lost a lawsuit in California over E.l.f.'s $6 Lash ’N Roll mascara, which is similar to Benefit’s $29 Roller Lash mascara. The judge’s decision was “a resounding win for us,” E.lf. CEO Tarang Amin previously told The Associated Press.

“The basic reality is we always put our E.l.f. twist on it,” he said. “It’s an E.l.f. product that’s a much better value.”

Lululemon sues Costco In its lawsuit, Lululemon argued that Costco had “unlawfully traded” on Lululemon’s reputation and that it was suing as part of wider intellectual property enforcement “directed to retailers who have chosen to copy rather than compete.”

Lululemon accuses Costco of making duplicates of several products, including its popular Scuba hoodies, Define jackets and ABC pants. Lululemon says one of the duplicates that Costco sells is the Hi-Tec Men’s Scuba Full Zip, with the lawsuit showing a screenshot image of Costco’s website showing the item priced at $19.97.

Roberts said she was “a little skeptical” of some of Lululemon's claims, noting that the design patents in particular could be hard to challenge. And she pointed to Lululemon's asserting common law trade dress over a “triangle kind of shape in the crotch region” of the ABC pants.

“My first reaction as a trademark expert is that looks pretty functional,” she said, and functional matter is not protected under trademark law. “I was just cracking up because that particular claim seemed really far-fetched to me. Those pants look really basic."
Still, Roberts noted that Lululemon had some plausible claims.

Lululemon alleges that Costco is known to use manufacturers of popular branded products for its private label Kirkland brand, although the companies involved don't clearly reveal that information to customers. Due to this, Lululemon claims some shoppers may believe that Kirkland-branded products are made by the authentic supplier of the “original” products.

Roberts said this could rule in Lululemon's favor as something that “weighs toward consumer confusion.” Still, she noted that most of the products Lululemon mentioned in its complaint weren't sold under the Kirkland brand, which could undermine the argument.

A message was left Tuesday seeking comment from Costco on the lawsuit.

Lululemon found itself in a similar dispute with Peloton in 2021, when it sued the exercise bike company over alleged “copycat products” in its then-new clothing lines. Two years later, the companies announced a five-year partnership that included Lululemon becoming the primary athletic apparel partner to Peloton.



A Nonprofit in France Is Fighting Fast-Fashion Waste, One Sneaker at a Time

 Mohamed Boukhatem, co-founder and director of SneakCoeurZ, a nonprofit organization giving used footwear a second life, poses in Champs-sur-Marne, east of Paris, Wednesday, March 25, 2026. (AP)
Mohamed Boukhatem, co-founder and director of SneakCoeurZ, a nonprofit organization giving used footwear a second life, poses in Champs-sur-Marne, east of Paris, Wednesday, March 25, 2026. (AP)
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A Nonprofit in France Is Fighting Fast-Fashion Waste, One Sneaker at a Time

 Mohamed Boukhatem, co-founder and director of SneakCoeurZ, a nonprofit organization giving used footwear a second life, poses in Champs-sur-Marne, east of Paris, Wednesday, March 25, 2026. (AP)
Mohamed Boukhatem, co-founder and director of SneakCoeurZ, a nonprofit organization giving used footwear a second life, poses in Champs-sur-Marne, east of Paris, Wednesday, March 25, 2026. (AP)

Hundreds of used sneakers arrive each week at a workshop east of Paris, where workers inspect them and ask a simple question: Can a shoe be saved?

The nonprofit SneakCœurZ is in the business of sorting the shoes to check which ones can be resold or redistributed, and which have to be rejected. It says it collected 30,000 pairs of used sneakers last year and resold 2,000 pairs, and wants to scale up that process.

“Today, there is no project of this scale in the sneaker sector,” said Mohamed Boukhatem, the organization's director general and co-founder. “We are the only ones able to industrialize both the processes and the collection of sneakers for reuse.”

The group's work underscores a growing waste problem in France, where the capital Paris is long one of the world’s fashion and luxury hubs.

The stakes are huge: the textile industry is among the world’s most polluting, and the fashion and textiles sector accounts for up to 8% of global greenhouse gas emissions, according to the United Nations. The European Parliament has said textiles were the third-largest source of water degradation and land use in the European Union in 2020.

Refashion, the French government-approved eco-organization for clothing, household linen and footwear, says 259 million pairs of shoes were sold in France in 2024.

It says only about a third of used textiles and footwear are separately collected, with much of the rest left in cupboards or thrown away with household waste.

At its workshop in Champs-sur-Marne, workers for SneakCœurZ inspect the used shoes and check which can be salvaged.

“The structural elements of the shoe are what determine whether we can refurbish it or not,” workshop manager Paul Defawes Abadie said.

“A damaged Velcro strap isn’t a deal breaker. A lace isn’t a deal breaker. Dirt is never a deal breaker,” he said. “What really matters is the wear of the structural materials, especially the outsole.”

Pairs that make the cut are cleaned from the sole upward, disinfected inside and, in some cases, whitened under UV light before being put back into circulation.

The nonprofit says it redistributed more than 7,000 pairs to people in need and helped create 19 jobs.

“Over the next three years, the goal is to triple or even quadruple these volumes and move to an industrial scale,” Boukhatem said.

France has tried to respond to the issue of fast-fashion waste with law, as well as rhetoric.

Its 2020 anti-waste law requires unsold nonfood goods to be reused, donated or recycled instead of destroyed.

Authorities introduced a state-backed repair bonus for clothing and shoes in November 2023. Separately, lawmakers are still working on a bill aimed at reducing the textile industry’s environmental impact.

The bill passed the National Assembly in March 2024 and the Senate in June 2025, and the government said in February that it was still aiming for a joint parliamentary committee this spring.


H&M's Q1 Profit Grows More Than Expected, Sees March Sales Up 1%

FILE PHOTO: A Swedish flag hangs outside a business on a street of the old city of Stockholm, Sweden, February 24, 2024. REUTERS/Tom Little/File Photo
FILE PHOTO: A Swedish flag hangs outside a business on a street of the old city of Stockholm, Sweden, February 24, 2024. REUTERS/Tom Little/File Photo
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H&M's Q1 Profit Grows More Than Expected, Sees March Sales Up 1%

FILE PHOTO: A Swedish flag hangs outside a business on a street of the old city of Stockholm, Sweden, February 24, 2024. REUTERS/Tom Little/File Photo
FILE PHOTO: A Swedish flag hangs outside a business on a street of the old city of Stockholm, Sweden, February 24, 2024. REUTERS/Tom Little/File Photo

Swedish fashion retailer H&M reported on Thursday a slightly bigger rise than expected in December-February operating profit, and predicted March sales would be up 1% in local currencies.

"Towards the end of the quarter our well-received spring collections contributed to a positive sales trend, which also continued into March," CEO Daniel Erver said in a statement.

Operating profit in H&M's fiscal first quarter, ⁠which includes the key ⁠Christmas shopping period, rose for a third consecutive quarter to 1.51 billion crowns ($162 million) from a year-earlier 1.20 billion and a mean forecast in an LSEG poll of analysts of 1.39 billion, on an organic sales decrease of 1%.

The rival ⁠to Inditex in January flagged that local-currency sales in the first two months of the quarter were down 2%.

According to Reuters, H&M said it is closely monitoring developments in the Middle East and the implications for global trade.

"With good flexibility in the supply chain and a low proportion of air freight, there are opportunities to adapt the flow of goods to changed conditions," it said. "Middle Eastern markets account for a ⁠small portion ⁠of the company’s total sales and the markets are operated through franchise partners."

On February 28, the United States and Israel launched coordinated strikes against Iran. Iran has in response launched strikes against Israel, US bases and Gulf states.

It has attacked vessels and infrastructure throughout the Gulf region and effectively closed the Strait of Hormuz, hitting global supply chains and causing soaring energy costs, raising concern over war-driven inflation and potential impact on consumer demand.


Next Says UK Sales Have Held Up Since Iran War Started

Women tour a popular outdoor shopping mall in Beijing, China, Sunday, March 8, 2026. (AP Photo/Andy Wong)
Women tour a popular outdoor shopping mall in Beijing, China, Sunday, March 8, 2026. (AP Photo/Andy Wong)
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Next Says UK Sales Have Held Up Since Iran War Started

Women tour a popular outdoor shopping mall in Beijing, China, Sunday, March 8, 2026. (AP Photo/Andy Wong)
Women tour a popular outdoor shopping mall in Beijing, China, Sunday, March 8, 2026. (AP Photo/Andy Wong)

British clothing retailer Next has not seen a noticeable drop off in UK sales since the US-Israeli war on Iran started at the end of February, its boss said on Thursday.

"Eight weeks, ⁠including the war ⁠weeks, have been good in the UK," CEO Simon Wolfson told Reuters after Next published full-year ⁠results.

He said sales in the Middle East, which account for about 6% of the group's annual turnover, fell "dramatically" in the first few days of the war and demand remains "suppressed.”

Wolfson said if ⁠Next ⁠did have to raise prices around June or July to make up for higher costs caused by the war, the increases would only be 1% to 2%.