Estée Lauder Fined $750,000 by Canadian Government for Environmental Violations

Estée Lauder Cosmetics Ltd., the Canadian arm of the global beauty giant Estée Lauder Companies Inc., has been ordered to pay a CAD $750,000 (approx. US$550,000) penalty after pleading guilty to multiple environmental offences under the Canadian Environmental Protection Act, 1999 (CEPA).

The ruling was handed down January 13, 2026, by the Ontario Court of Justice in Toronto, and publicly announced in early February.

Violations Center on Unreported “Forever Chemicals” in Eyeliners

The offences stem from a May 2023 inspection by enforcement officers from Environment and Climate Change Canada. The government found that the company had sold some eyeliner products that contained perfluorononyl dimethicone, a chemical belonging to the class of per- and polyfluoroalkyl substances (PFAS), often referred to as “forever chemicals.”

PFAS compounds are widely used in consumer products for their water-resistant and long-lasting properties, but they are also known for extreme environmental persistence and potential health concerns because they do not easily degrade in nature or the human body.

Under CEPA’s rules, importing, selling or distributing cosmetics that contain perfluorononyl dimethicone is classified as a “significant new activity.” Companies must notify the government before engaging in such activities so regulators can assess potential health and environmental risks. Estée Lauder failed to do so.

Non-Compliance With Government Order

Following the discovery, regulators issued an environmental protection compliance order in June 2023, outlining steps the company needed to take to meet Canadian requirements. The court found the company failed to comply with that order, resulting in a second violation of federal law.

Additional Consequences and Regulatory Actions

Alongside the fine which will be paid into the Government of Canada’s Environmental Damages Fund to support environmental remediation projects the court also ordered Estée Lauder to:

• Notify its shareholders of the conviction; and

• Have its name added to the Environmental Offenders Registry, a public database listing corporations convicted under federal environmental laws.

The registry listing increases public transparency and may impact future regulatory oversight.

Industry and Public Reaction

Environmental groups and public commentators have praised the ruling as part of stricter enforcement of PFAS regulations, which have been tightening globally. However, some observers argue the penalty is modest given the size of multinational corporations like Estée Lauder highlighting broader debates about corporate accountability for chemical safety.

Experts note that PFAS chemicals are increasingly under regulatory scrutiny in many markets due to their potential for long-term environmental and health impacts, especially as countries look to reduce reliance on persistent industrial chemicals.

What This Means for Beauty Brands

The case underscores growing government action against “forever chemicals” in consumer products especially in cosmetics where long-wearing formulations often incorporate PFAS-type substances. This trend suggests that beauty brands may soon face tighter reporting requirements and regulatory compliance expectations across global markets.