Lululemon accused of greenwashing in class action lawsuit

Lululemon Athletica Inc. is accused of deploying misleading greenwashing tactics to make consumers think that it’s more sustainable and environmentally friendly than it really is. According to a class action lawsuit filed in the US District Court of the Southern District of Florida last Friday, the Canadian athleisure brand has been taking advantage of its consumers by promoting its products, operations, and business practices as sustainable and positively impacting the environment through its “Be Planet” marketing campaign.   

The 53-page lawsuit against Lululemon alleges that despite the brand’s assertions through its “Be Planet” campaign and its commitment to sustainability and equity, these claims misrepresent the company’s actual actions and impacts. The class-action complaint contends that Lululemon, a leading global athleisure wear seller, has a substantial and increasing impact on the climate and environment, contrary to the image it promotes.

Lululemon faces class-action lawsuit over misleading sustainability claims

“Lululemon’s marketing campaign messages are unfair, false, deceptive, and misleading to reasonable consumers as they portray Lululemon as something it is not,” reads the complaint. “The apparel industry is a major contributor to the environmental crisis, and as one of the largest apparel companies in the world, Lululemon has a significant and growing climate and environmental footprint, and its actions and products directly cause harm to the environment and the deterioration of the planet’s health – the opposite of its Be Planet promises and representations.”

The complaint argues that Lululemon’s business operations and products actually cause direct harm to the environment and the ongoing deterioration of the environment, which is the complete opposite of what it promises and represents in its Be Planet campaign. “Instead of sustaining and positively improving the planet, Lululemon is increasingly causing negative impact and harm,” continues the class action lawsuit. 

More specifically, the class-action lawsuit against Lululemon asserts that the brand is culpable of “significant greenhouse gas emissions, landfill waste, and release of microplastics into the environment,” among other alleged damages. The complaint also argues that Lululemon’s purportedly misleading claims of sustainability and environmental friendliness are designed to persuade and justify to consumers the premium prices charged for its products.

Lululemon first introduced its “Be Planet” campaign and its Impact Agenda in October 2020, mapping its long-term plan to reduce its overall environmental impact. Part of the strategy includes a pledge from the brand to cut carbon emissions by 2030 significantly. Lululemon’s sustainability strategy also includes commitments to ensure its products include end-of-use solutions by 2030; ensuring that at least 75 percent of its products incorporate sustainable materials by 2025; providing consumers with options to extend the lifespan of products through reselling, repairing, or recycling by 2025; utilizing 100 percent renewable electricity for its operations by 2021; decreasing freshwater use intensity by 50 percent in product manufacturing; and reduce single-use plastic packaging by 50 percent by 2025.

However, according to Lululemon’s 2022 impact report, the company’s scope 3 emissions, which are indirect emissions occurring within its supply chain, have reached 1.2 million tons of carbon dioxide – nearly double the company’s 2020 scope 3 emissions. “Lululemon’s 2022 emissions are the equivalent of burning of over 720 million liters of gasoline, over 3.8 million barrels of oil, or the fueling of over 518,000 passenger vehicles for a year,” reads the complaint, which adds that these emissions are expected to increase further as the company seeks to double its revenue by 2026. The class-action lawsuit also alleges that Lululemon’s representations of its targets regarding its Scope 1 and Scope 2 emissions are misleading, as the brand does not state that these emissions account for only about 0.3 percent of its total greenhouse gas emissions. 

As Lululemon continues to grow, with its revenue more than doubling to hit 8.1 billion USD between 2018 and 2022, the case alleges that the “Be Planet” marketing campaign is “objectively false, deceptive, and misleading” and stands in violation of almost every Federal Trade Commission guideline for environmental marketing claims. The lawsuit filing adds that  Canada’s Competition Bureau has launched a formal investigation into Lululemon over its allegedly deceptive marketing claims.