Costco (COST) Faces Lawsuit Over Alleged Lululemon Knockoffs

Costco Wholesale Corporation (NASDAQ:COST) is one of the 12 best consumer goods stocks billionaires are quietly buying. On July 1, Lululemon filed a lawsuit against Costco, accusing the retail giant of selling unauthorized lookalikes of its popular SCUBA hoodies, DEFINE jackets, and ABC pants under the Kirkland brand. The suit claims these lower-priced “dupes” could mislead customers and harm Lululemon’s brand reputation.

Costco (COST) Faces Lawsuit Over Alleged Lululemon Knockoffs

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Lululemon is seeking to stop Costco’s sales of the disputed items and recover damages, citing violations of its trademarks and design patents. The case highlights growing tensions over copycat products in retail, especially as social media fuels demand for cheaper alternatives.

Costco Wholesale Corporation (NASDAQ:COST) operates membership-based warehouse stores across numerous countries, offering a wide range of branded and private-label products—from groceries and household essentials to electronics, apparel, and furniture. It also provides services like pharmacies, gas stations, optical centers, and online shopping. Costco is considered a consumer goods stock because it sells everyday products directly to consumers, making it a key player in the consumer staples and discretionary retail space.

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Disclosure: None. This article is originally published at Insider Monkey.