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Costco is facing legal trouble after Lululemon filed a lawsuit accusing the wholesale giant of selling clothing that looks almost exactly like its best-selling activewear.

The lawsuit was filed in the US District Court for the Central District of California.

According to Lululemon, Costco has been selling "confusingly similar" versions of its popular items—like Scuba hoodies, Define jackets, and ABC pants—without permission, CBS News reported. Lululemon says this is hurting its brand and misleading customers.

The athletic wear company claims that some Costco products are so close in design to the originals that people might think they're buying real Lululemon items.

Others may buy them just because they look nearly the same but are much cheaper. For example, Lululemon's jackets sell for more than $100, while Costco's Hi-Tec Men's Scuba Full Zip was listed online for just $19.97.

"As an innovation-led company that invests significantly in the research, development and design of our products, we take the responsibility of protecting and enforcing our intellectual property rights very seriously," a Lululemon spokesperson said.

Costco Faces Legal Heat for Alleged Lululemon Dupes

The lawsuit highlights Costco's long-standing practice of working with manufacturers who also produce name-brand items.

But Lululemon says Costco doesn't tell customers when its Kirkland brand or other labels are made by these manufacturers.

This, they claim, leads shoppers to wrongly believe the products are from the same makers as the original brands.

Lululemon is asking the court for a jury trial. It wants Costco to stop selling the products and is also seeking financial compensation for damages.

According to AP News, this isn't the first time Lululemon has taken legal action over copycat clothing. In 2021, the company had a similar dispute with Peloton, which was later resolved with a five-year partnership.

As of now, Costco has not responded publicly to the lawsuit. Costco's alleged duplicates include not only the Hi-Tec jacket, but also items under labels like Danskin, Jockey, Spyder, and Kirkland.

All these products are called out in the lawsuit for looking too much like Lululemon originals.