Lululemon Athletica Inc. LULU reportedly faces allegations of misleading consumers about its sustainability efforts through its Be Planet marketing campaign.
A proposed class action lawsuit claims that despite the company’s green promises, its greenhouse gas emissions have actually increased, according to a report by Bloomberg.
The lawsuit, submitted in the U.S. District Court for the Southern District of Florida, accuses Lululemon of contributing significantly to the environmental crisis while falsely presenting itself as eco-friendly, per the report.
“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 stated.
In October 2020, Lululemon launched its Be Planet Impact Agenda, aiming to reduce its environmental footprint.
The campaign promised that 75% of the company’s products would use sustainable materials and vowed to cut fresh water usage by 2025.
However, Lululemon’s 2022 impact report revealed that its scope 3 emissions have surged to 1.2 million tons of CO2, nearly double the 2020 levels.
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The complaint alleges that these emissions will continue to rise as Lululemon aims to double its revenue by 2026.
The lawsuit claims that Lululemon’s marketing, which often features natural imagery, misleads consumers into believing the company is environmentally responsible.
Lead plaintiff Amandeep Gyani argued this deception leads customers to pay a premium for what they perceive as sustainable products.
Gyani, represented by Gold Law PA and Eggnatz Pascucci, seeks to represent consumers nationwide and in Florida who have purchased Lululemon products since October 2020.
The lawsuit emerges amid growing scrutiny of the fast-fashion industry’s environmental impact. Democratic lawmakers recently formed a caucus to address textile recycling and sustainable fibers, while brands like Patagonia and Everlane advocate for emissions disclosure regulations.
Price Action: LULU shares closed higher by 0.64% at $291.06 on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Pedro Alvarez from Pixabay
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