Lululemon faces California lawsuit over alleged 'phantom discount' pricing

Canadian athleisurewear giant Lululemon has been sued in California over allegations it used misleading reference pricing on products sold through its website.

According to Modern Retail, the lawsuit, filed in Los Angeles Superior Court by consumer Annette Cody, claims the activewear retailer displayed "fictitious regular prices" alongside discounted prices to create the appearance of larger savings.

Cody alleges she purchased a pair of Wunder Train High-Rise tights in April for 59 dollars, which were advertised with a struck-through price of 98 dollars, despite the product allegedly not having been sold at that price since October 2025. The complaint argues the move violated California's consumer protection laws, with Cody now seeking damages, restitution and injunctive relief.

The case comes amid similar cases scrutinising "phantom discount" pricing, and follows a lawsuit filed against Nike earlier this month that alleged the sportswear giant had inflated prices on discounted products sold through its direct-to-consumer channels.

Nike's allegations come against the sale of a pair of Nike Air Max 2017 sneakers, which were listed for various sale prices between September 8, 2025, and March 14, 2026, alongside an original price of 190 dollars. The filing specifically references California's False Advertising Law, which is said to have been violated as retailers are required to list the true market price of a the product within the past 90 days.