Canada's Competition Bureau has launched a formal investigation into Lululemon, a Vancouver-based athletic apparel maker, following allegations of misleading environmental claims or "greenwashing." 

The probe was triggered by a complaint filed by Stand.earth, an environmental advocacy nonprofit, regarding Lululemon's "Be Planet" sustainability campaign.

Lululemon's Alleged 'Greenwashing'

Stand.earth's complaint, filed in February, points out discrepancies between Lululemon's marketing claims and its actual environmental impact. 

Specifically, the complaint highlights a significant increase in greenhouse gas emissions since the launch of the "Be Planet" campaign in 2020.

Lululemon has outlined ambitious climate targets, including a 2030 goal of reducing emissions intensity by 60 percent for its Scope 3 operations. 

However, Stand.earth asserts that Lululemon's reliance on fossil fuel-derived materials contradicts its sustainability claims.

According to Stand.earth, Lululemon's Scope 3 greenhouse gas emissions, which represent indirect emissions from its value chain, surged from approximately 471,130 tons in 2020 to 847,416 tons in 2022. 

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Key Points of Investigation

The Competition Bureau's inquiry aims to determine if Lululemon violated the Competition Act by engaging in deceptive marketing practices. 

If found guilty, the company could face fines of up to 3 percent of its gross global profits for each year it misled consumers, potentially totaling over $400 million.

The investigation centers on whether Lululemon's "Be Planet" campaign accurately reflects its environmental practices. 

Todd Paglia, Executive Director at Stand.earth, expressed satisfaction with the investigation, emphasizing the importance of scrutinizing how Lululemon reconciles its "Be Planet" branding with its increasing emissions.

A Lululemon representative told Newsweek that they had been notified about the investigation and expressed confidence that the review would verify the accuracy and strength of their public representations.

The company reiterated its commitment to cooperation and transparency throughout the process.

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