Canada has launched an investigation into lululemon athletica inc. following a complaint by environmental activist group Stand.earth, alleging that the company has engaged in greenwashing through its “Be Planet” marketing campaign. The complaint claims that lululemon has exaggerated its climate action efforts, leading to false or misleading environmental claims. While the Competition Bureau has opened an inquiry into the matter, no formal allegations have been made by the agency.
Lululemon, an international clothing company based in Vancouver, released its Impact Agenda in 2020, outlining plans to reduce its environmental impact through the use of sustainable materials and the reduction of greenhouse gas emissions. The company’s subsequent “Be Planet” marketing campaign made general claims about taking climate-friendly actions, which Stand.earth alleges are misleading.
An application filed by six applicants associated with Stand.earth on February 8 accuses lululemon of making false environmental claims. The application, drafted by Vancouver-based law firm Harper Grey LLP, highlights a 100% increase in climate pollution since 2020 and the use of 60% fossil fuel-derived materials in lululemon’s products. Despite these figures, the company’s marketing claims suggest otherwise, prompting allegations of greenwashing by Stand.earth.
Stand.earth claims that lululemon’s environmental claims violate consumer protections under Canada’s Competition Act. The group is seeking a judicial order for lululemon to remove the Be Planet campaign from all communication channels, issue a formal apology to Canadian customers for misleading information, and pay a fine equivalent to 3% of their annual worldwide gross revenues to a climate mitigation and adaptation fund in Canada, amounting to $9.6 billion for 2023.
The Competition Bureau has informed Stand.earth that an inquiry has been opened in response to the complaint, as required by law. However, the language used by the Bureau indicates that the investigation is a procedural step and does not imply any findings of violation. While the inquiry itself may not lead to concrete action against lululemon, the accusation of greenwashing could still impact the company’s reputation and consumer trust. This case highlights the risks associated with making climate claims in marketing materials.
Ultimately, the outcome of the investigation will determine if lululemon violated any laws regarding its environmental claims. If Canada finds no wrongdoing and does not pursue the claims further, there may be less media coverage on the matter. However, the accusation of greenwashing has already been made, potentially affecting how consumers perceive lululemon and its sustainability efforts. The case serves as a reminder for companies to be transparent and accurate in their environmental messaging to avoid allegations of greenwashing.
