W7 Discussion: Lululemon: Turning Lemons into Lemonade

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

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