Lululemon Faces Texas Probe Over PFAS in Apparel Safety Standards
Lululemon has received a civil investigative demand from the Texas Attorney General to determine whether its athletic apparel contains per- and polyfluoroalkyl substances and whether product claims misled consumers. The probe will review the company’s Restricted Substances List, testing protocols and supply chain practices as it reported $11.1 billion in fiscal 2025 revenue and a 56.6% gross margin.
1. Texas AG Issues Civil Investigative Demand
The Texas Attorney General’s office has issued a civil investigative demand to Lululemon USA, seeking documents and data on potential PFAS presence in its athletic apparel. The action forms part of a broader inquiry into consumer safety and whether the company’s marketing aligns with actual product composition.
2. Investigation Scope and Compliance Review
Authorities will examine Lululemon’s Restricted Substances List, chemical testing procedures and supplier certifications to assess compliance with declared safety standards. The probe also evaluates whether consumers were misled by product claims related to health, quality and environmental sustainability.
3. Financial Performance and Risk Implications
In fiscal 2025, Lululemon generated $11.1 billion in revenue with a 56.6% gross margin, down 260 basis points year over year. A prolonged regulatory inquiry could weigh on brand reputation, incur legal costs and affect consumer confidence in key growth markets.