Canada’s competition watchdog has opened an inquiry into Lululemon following a “greenwashing” complaint that accuses the Vancouver-based yogawear purveyor of misleading consumers about its impact on the planet.
“Stand[.earth]’s complaint to the Competition Bureau has been accepted and has set off an official inquiry into Lululemon’s anti-competitive greenwashing practices,” said Todd Paglia, executive director at Stand.earth, the environmental nonprofit that charged Lululemon with “pouring gas on a burning planet” in February. “We are pleased that, through this investigation, the Competition Bureau will have the opportunity to ask Lululemon how it can claim to ‘Be Planet’ while creating more planet-harming emissions every year than half a million cars.”
In a letter to Stand.earth counsel Harper Grey dated April 26, Josephine Palumbo, deputy commissioner of competition for the Competition Bureau’s deceptive marketing practices directorate, said that the commissioner of competition has “commenced an inquiry” that seeks to “determine the facts” relating to allegations that Lululemon has breached the Competition Act by making “false, misleading and/or unsubstantiated representations.”
While Lululemon did not respond to a request for comment about the development, the asana-friendly retailer previously told Sourcing Journal that it is “focused on helping to create a garment industry that is more sustainable and addresses the serious impacts of climate change,” such as contributing $10 million to the Apparel Impact Institute’s Fashion Climate Fund to identify and scale solutions that “accelerate collective climate action.”
It’s also committed to its decarbonization plan, which includes making “tangible investments” to meet its 2030 climate goals “on the path” to being a net-zero company by 2050. So far, the Chip Wilson-founded firm has achieved its goal of 100 percent renewable electricity and a 60 percent absolute reduction of greenhouse emissions in its owned and operated facilities.
“We recognize that the majority of impact comes from emissions within the broader supply chain,” a spokesperson said at the time. “In 2022, we measured and reported a limited intensity reduction in our scope 3 greenhouse emissions and are working to accelerate this progress. Like others in the industry, we are working to advance calculation methodologies to support and obtain independent verification of scope 3 emissions. Tackling the climate crisis and scaling solutions in a meaningful way requires supply chain collaboration, investment and transparency.”
But Stand.earth said that Lululemon’s emissions have soared by a “staggering” 100 percent since it deployed its “Be Planet” slogan—alongside “Be Human” and “Be Well”—as a pillar of its so-called impact agenda in 2020. The Team Canada outfitter, which revealed its Paris 2024 kit last month, also relies heavily on “climate-damaging” coal and other fossil fuels to make its products, the organization said. More than 60 percent of its products, in fact, are petrochemical-based, meaning they “contribute to climate pollution, cannot be effectively recycled, do not biodegrade and release microplastics in the oceans and waterways.”
“As the official kit provider of Team Canada at the Olympics and Paralympics in Paris, Lululemon will represent our nation in front of the whole world,” said Rachel Kitchin, senior corporate climate campaigner at Stand.earth. “Our athletes deserve to be at their absolute best in a brand that aligns with their values as Canadians, and not misled by deceptive and greenwashing marketing.”
Should the Competition Bureau find that Lululemon has made materially false and misleading representations to the public, it could fine the athleisure maker up to 3 percent of its gross global profits for every year that it has violated the Competition Act, potentially $400 million or more, by Stand.earth’s estimate. Lululemon would also have to amend or remove any offending marketing.
“Lululemon’s customers around the world need to know the real impacts of their climate pollution, not the greenwashed version they sell their products with,” Paglia said.
Stand.earth has requested that any funds be disbursed by the Environmental Damages Fund, a government program administered by Environment and Climate Change Canada, and used for climate mitigation and adaptation efforts.
“Lululemon is one of Canada‘s most influential companies and one of the world’s biggest fashion brands through its ‘Be Planet’ campaign,” Tzeporah Berman, Stand.earth’s international program director, said at a press conference in Feburary. “Although Lululemon has taken some actions and set some targets to reduce the harmful impact of its business operations and products, Stand.earth’s position in its complaint is that Lululemon’s business is inconsistent with its public claims to be an environmentally responsive company.”
