The Competition Bureau in Canada has launched an investigation into lululemon following a complaint by environmental activist group Stand.earth. The complaint alleges that lululemon engaged in greenwashing by exaggerating climate action as part of its “Be Planet” marketing campaign. While the investigation has been opened, no allegations have been made by the agency. Lululemon, headquartered in Vancouver, released its Impact Agenda in 2020 outlining plans to reduce their environmental impact through sustainable materials and reduction of greenhouse gas emissions.
In February, applicants associated with Stand.earth claimed that lululemon made false or misleading environmental claims in their 2022 Impact Report. The report showed a 100% increase in climate pollution since 2020, with 60% of materials used being fossil fuel-derived. Despite this, lululemon made claims in their marketing campaign about avoiding environmental harm and contributing to restoring a healthy planet. Stand.earth alleges that these claims are greenwashing and violate consumer protection laws in Canada, urging the Commissioner to take action.
The applicants are requesting that lululemon remove the Be Planet marketing campaign, issue a formal apology to Canadian customers, and pay a fine of 3% of their annual worldwide gross revenues towards climate mitigation and adaptation in Canada. The net revenue for lululemon athletica Inc. in 2023 was $9.6 billion. The Competition Bureau has notified Stand.earth that an inquiry has been opened in response to the application, following the legal requirements of the Competition Act. However, the inquiry does not indicate a finding of a violation but is a necessary step in the process.
The inquiry by the Competition Bureau serves as a reminder of the dangers of climate claims in marketing and the potential backlash a company may face if allegations of greenwashing are made. If Canada finds no violation and does not move forward with the claims, there may be less media coverage on the issue, but the accusation of greenwashing may still stick with consumers. Lululemon may need to address these claims and take action to ensure the transparency and accuracy of their environmental initiatives in the future to maintain trust with their customers.
Overall, the investigation into lululemon’s marketing practices highlights the importance of companies being transparent and truthful in their environmental claims. Greenwashing can have serious consequences for a company’s reputation and consumer trust. By addressing these allegations and taking steps to improve their environmental impact, lululemon can work towards rebuilding trust with consumers and demonstrating their commitment to sustainability.
