Competition Bureau investigating Lululemon over greenwashing allegations | CBC News (2024)

Jenna Benchetrit · CBC News

· Posted: May 06, 2024 8:01 AM EDT | Last Updated: May 7

Canada's CompetitionBureauhas openeda formal investigation intoLululemon'senvironmental claims in its marketing campaigns,a spokesperson for the agency toldCBC News on Monday.

Marianne Blondin confirmed in an email that the CompetitionBureau "has commenced an investigation under theCompetition Actinto the alleged deceptive marketing practices."

"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 theB.C. athleisuregiant accusingit of greenwashing, had announced the investigation earlier on Monday.

Thecomplaint, which the non-profit said was filed in February, says Lululemon'sBe Planet sustainability campaign from 2020 —in which the company said it would work to reduce its greenhouse gas emissions — is contradicted bya 2022 impact reportthat outlined Lululemon'sprogress in reaching its climate goals.

The impact reportshowsthe company's Scope 3 greenhouse gas emissions —indirect emissionsthat 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 847,400tonnesin 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."

A spokesperson for Lululemonsaid the company is aware of the "review" by the Competition Bureau and that it is "committed to co-operating on any next steps."

"We are confident that its review will confirm that the representations we make to the public are accurate and well-supported," the spokesperson said in the statement to CBC News on Monday.

'Not about trying to punish'

Last year, Lululemonpartneredwith a startup to create clothes from recycled nylon and polyester.But the report from Stand.earth says many of the company'sproductscontinue 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, toldCBC News.

"If they did, we would drop our Competition Bureau complaint. This is about results, not about trying to punish Lululemon."

WATCH | Lululemon's marketing campaigns under fire from environment groups:

Under Section 9of theCompetition 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 environmentalpracticeor environmental benefits.

No legal obligation

Anika Kozlowski, an assistant professor of fashion design, ethics and sustainability at Toronto Metropolitan University, says thereis legal recourse if the bureau determines that Lululemon is greenwashing.

"But in terms of companies actually having to fulfilthese promises, there's really no legal obligation on their end, as often these are just voluntary," she said.

Lululemon isn't the lone fashion retailer navigating these issues, Kozlowskisays; it's an industry-wide problem.

She says if the Competition Bureau finds that Lululemon uses deceptive marketing, it "will just help clear the waters for consumers, if they are trying to shop better, [so] that they understand a bit more what they're buying.

WATCH | CBC Kids News explains greenwashing:

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 executivesshould 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.

A spokesperson for Lululemon 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.

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