The news: Lululemon is suing Costco for selling dupes. In a lawsuit filed June 25, the athleisure brand accuses the wholesale giant of infringing on its design patents by selling knockoff sweatshirts, jackets, and other activewear.

Lululemon seeks an immediate halt to sales of the disputed products and unspecified monetary damages.

The context: Lululemon knows its minimalist designs and premium price points make it a prime target for knockoffs.

• TikTok hashtags only amplify the trend, directing shoppers to cheap lookalikes of the brand’s best-selling leggings and gear.
• In 2023, Lululemon leaned into the craze with a series of “Dupe Swap” events, inviting consumers to trade in their fakes for the real thing.

This isn’t Costco’s first run-in with a brand over alleged copycats. In May, Deckers sued the retailer, charging it ripped off its Ugg design with a house-brand Shearling slipper.

Our take: For nearly as long as there have been name brands, there have been knockoffs.

• But the rise of dupe culture on TikTok—combined with consumers' growing cost-consciousness—is pushing more shoppers toward cheaper alternatives and more brands to the brink.
• It's become a growing headache for companies like Estée Lauder, which have struggled as buyers opt for low-priced lookalikes.

Lululemon’s lawsuit marks a significant escalation in the brand’s efforts to protect its designs. If it succeeds, it could set a precedent—and signal that the era of unchecked dupes may be nearing a turning point.