A $750 000 Environmental Fine for Estée Lauder

Estée Lauder Cosmetics Ltd. has been ordered to pay a $750,000 fine after pleading guilty to two charges under the Canadian Environmental Protection Act.

The decision was rendered on January 13 by the Ontario Court of Justice.

The two offences involved failing to notify the government of a new activity and failing to comply with an enforcement order.

The facts

During a routine inspection in May 2023, enforcement officers from Environment and Climate Change Canada discovered that the company was selling eyeliners whose ingredient list included perfluorononyl dimethicone—an ingredient used in cosmetics to improve adhesion, durability, spreadability, and resistance to water or oil.

However, the importation, sale, and distribution of cosmetics containing perfluorononyl dimethicone are considered a “new activity” under the Act, meaning the company was required to notify the government before undertaking this activity. This requirement allows the government to assess in advance any potential risks the substance may pose to human health or the environment.

On June 8, 2023, officers issued an environmental protection compliance order against the company regarding this “new activity.” The order outlined the steps the company was required to take to meet regulatory requirements, which it failed to do.

The Court therefore imposed a $750,000 fine on the Ontario-based company. It also ordered the company to inform its shareholders of the conviction.

The fine will be paid into the Government of Canada’s Environmental Damages Fund, which supports projects aimed at repairing environmental harm or protecting the environment.

As a result of this conviction, the company’s name will also be added to the Environmental Offenders Registry. (N.P.)