Lululemon under probe by Texas Attorney General over ‘forever chemicals’ in activewear

Canadian activewear giant Lululemon is facing a formal investigation by the Texas Attorney General’s Office over the potential for harmful synthetic chemicals in its clothing; even though the company said it phased out these clauses more than two years ago.

Texas Attorney General Ken Paxton Opens PFAS Investigation into Lululemon

Texas Attorney General Ken Paxton announced Monday that his office has launched a formal investigation into Vancouver-based activewear giant Lululemon over the possible presence of PFAS (perfluoroalkyl and polyfluoroalkyl substances) in its athletic apparel. The investigation, published on the attorney general’s official website, focuses on whether the company’s products contain chemicals that its wellness marketing would lead consumers to believe do not exist.

PFAS, commonly referred to as “forever chemicals,” are synthetic compounds that are resistant to breakdown in the environment and the human body. Emerging research has linked long-term exposure to a number of serious health conditions, including kidney disease, some cancers and low birth weight in newborns.

What Lululemon products will the Texas AG-led investigation examine?

The attorney general’s office said it will review Lululemon’s banned substances list, internal testing protocols, and supply chain practices, all with the goal of determining whether the company’s products actually meet its publicly espoused safety standards.

The concern framed by Paxton’s office stems from consumer confidence: Shoppers who purchase Lululemon clothing on the strength of its sustainability and wellness messages may be unaware of what the clothing actually contains.

“Americans need not worry if they are being deceived while trying to make healthy choices for themselves and their families,” Paxton said in a statement.

Lululemon Response: PFAS Phased Out Since Beginning of 2024

Lululemon did not dispute the existence of the investigation. In the statement sent by e-mail to Associated PressThe company confirmed it was aware of the investigation and said it was cooperating by providing the requested documents.

But the sportswear company has been firm in its defense, stating that PFAS is being phased out of its products starting in early 2024.

“The health and safety of our guests is paramount, and our products meet or exceed global regulatory, safety and quality standards,” Lululemon said. “We require all our suppliers to regularly test for restricted substances, including PFAS, by trusted third-party agencies to verify ongoing compliance.”

The company explained that PFAS had previously been used in durable water-repellent treatments applied to a small portion of its product range, but not in its extensive catalogue.

A Brand Under Pressure on Many Fronts

The Texas probe lands at a particularly turbulent time for Lululemon. The company currently does not have a permanent chief executive following the departure of Calvin McDonald in January amid slowing sales and growing concerns about product quality. The search for his successor continues.

The company has also been battling constant criticism from its own founder, Chip Wilson, who has expressed dissatisfaction with the brand’s strategic direction and is pushing for a significant overhaul of the board.

In March, Lululemon’s board of directors sought to relieve some of that pressure by appointing Chip Bergh, the former chairman and chief executive of Levi Strauss & Co, as a board member to replace longtime executive David Mussafer, chairman and managing partner of private equity firm Advent International.

Lululemon Shares Fall as Investor Reviews Grow

Lululemon shares fell less than 1% in Monday trading; It’s a modest decline, but it adds to a broader pattern of investor unease surrounding the brand’s near-term outlook.

It remains to be seen whether Paxton’s investigation will ultimately uncover evidence of ongoing noncompliance or be resolved by Lululemon’s 2024 phaseout timeline. For a company whose identity cannot be separated from the language of health and conscious living, it is clear that the reputational risk of the investigation extends far beyond the legal dimension.