Zappos and Lululemon

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Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-4 Misleading Advertising Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Toure Williams ([email protected]) © 2019 Cengage Learning, Cengage Learning

12-4 Misleading Advertising In 2007 the New York Times cast doubt on the authenticity of Lululemon’s VitaSea line of products. Lululemon claimed that its VitaSea products were infused with seaweed, which had medicinal properties including stress relief. In November 2007, The New York Times released an article claiming that it had tested VitaSea products and could not find seaweed fiber in the product. This claim unleashed a storm of criticism.

Lululemon responded by refuting the claims of The New York Times. It cited independent tests performed the previous year. It also responded to the accusations by stating that a lab in Hong Kong had performed different tests on the product throughout the year, all of which confirmed that the products contained everything that it advertised.

However, Canada’s Competition Bureau challenged Lululemon, not due to the content of the VitaSea product but rather the company’s claims about the product’s health benefits. The bureau believed that these claims of health benefits from seaweed were unsubstantiated and ordered Lululemon to remove all such labeling.

Chapter 12: Lululemon: Turning Lemons into Lemonade: 12-4 Misleading Advertising Book Title: Business Ethics: Ethical Decision Making and Cases Printed By: Toure Williams ([email protected]) © 2019 Cengage Learning, Cengage Learning

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