Canada’s Competition Bureau has opened a formal investigation into Lululemon’s environmental claims in its marketing campaigns, a spokesperson for the agency told CBC News on Monday.
Marianne Blondin, a Competition Bureau spokesperson, confirmed in an email that it “has commenced an investigation under the Competition Act into the alleged deceptive marketing practices after receiving an application under Section 9 for the commencement of an inquiry on behalf of six Canadian residents.”
“There is no conclusion of wrongdoing at this time,” she wrote. “As the Bureau is obligated by law to conduct its work confidentially, I cannot provide further details on this case at this time.”
Stand.earth, the non-profit that filed the complaint against the B.C. athleisure giant accusing it of greenwashing, had announced the investigation earlier on Monday.
“Stand.earth representatives were notified late last week by Competition Bureau Canada that it has officially opened an inquiry into Lululemon, following a complaint filed by the environmental advocacy organization that alleges the apparel company misleads customers about its environmental impact,” the Vancouver-based organization said in a statement to CBC News.
Stand.earth’s complaint, which the non-profit said was filed in February, says Lululemon’s Be Planet sustainability campaign from 2020 — in which the company said it would work to reduce its greenhouse gas emissions — is contradicted by a 2022 impact report that outlined Lululemon’s progress in reaching its climate goals.
The impact report shows the company’s Scope 3 greenhouse gas emissions — indirect emissions that occur as a result of a company’s activities, including those produced by customers using its products— increased from about 471,100 tonnes in 2020 to 847,400 tonnes in 2022. Lululemon wrote in its report that this area “needs acceleration.”
The company also wrote in 2020 that it “leaned into investments and partnerships to develop sustainable materials that demonstrate our leadership in product innovation and environmental harm reduction.”
Complaint is ‘not about trying to punish Lululemon,’ activist says
Last year, Lululemon partnered with a startup to create clothes from recycled nylon and polyester. But the report from Stand.earth notes that many of the company’s products continue to be made with polyester or nylon, both of which are materials manufactured from fossil fuels.
“We would like to create a win-win solution with Lululemon to see them really target and eliminate the climate pollution in their supply chain,” Todd Paglia, executive director of Stand.earth, told CBC News on Monday.
“If they did, we would drop our Competition Bureau complaint. This is about results, not about trying to punish Lululemon.”
Under Section 9 of the Competition Act, any six Canadian residents who believe that a company is violating the act can apply to the bureau commissioner to launch an investigation.
Paglia previously called out Lululemon for greenwashing, a term used to describe when companies, governments or individuals mislead others on their environmental practice or environmental benefits.
Speaking with CBC News outside of a Lululemon store in Toronto, Gracie Valentine said that greenwashing is “pretty big nowadays, unfortunately.”
“Companies are pretty much just allowed to say whatever, so it’s hard to even know which ones to shop at now,” Valentine said.
Shavana Kunj, who was window-shopping with Valentine, said that company executives should be held responsible for a brand’s business practices — not the shoppers who buy their products.
“I’m wearing Lululemon right now! It sucks, but I’m still going to shop at the places that I like,” Kunj said.
Do you ever see companies using terms like “sustainable” or “eco-friendly?” It could be a clue that they are doing something called greenwashing.
CBC News has reached out to Lululemon for comment.
A spokesperson for the company previously told CBC News the company is focused on helping create an industry that is “more sustainable and addresses the serious impacts of climate change.”
The company is committed to its decarbonization plan, the spokesperson added, with the aim of meeting its 2030 climate targets and achieving net-zero emissions by 2050.
“We recognize that the majority of impact comes from emissions within the broader supply chain,” the spokesperson wrote, adding that the company reported on its own emissions in the 2022 annual report.