Texas Attorney General Ken Paxton has reached a settlement with Lululemon over concerns about potentially harmful chemicals in its activewear — and his office is already setting its sights on other major clothing brands.
Six months after launching a probe into the athletic apparel giant, Paxton announced an Assurance of Voluntary Compliance, or AVC, with Lululemon USA Inc. The investigation began in April, when Paxton issued a Civil Investigative Demand to determine whether the company was misleading consumers about product safety.
At the heart of the inquiry: PFAS, or per- and polyfluoroalkyl substances — synthetic compounds commonly known as “forever chemicals.” PFAS have been linked to serious health risks, including cancer, infertility and endocrine disruption, and are often found in the synthetic fabrics used in activewear.
Lululemon, which reported more than $11 billion in revenue in fiscal year 2025, pushed back on the investigation at the time, saying it had already phased out PFAS from its products in fiscal year 2023 and that all its products “meet or exceed global regulatory, safety, and quality standards.”
The AVC is a legally binding agreement that holds Lululemon accountable going forward. Under the deal, the company must continue enforcing chemical safety requirements throughout its supply chain and require vendors to prove compliance with its Restricted Substances List through independent lab testing or third-party certifications.
Lululemon must also verify that certifications are valid, order additional testing when they expire and take corrective action when vendors fall out of compliance. The agreement remains in effect for three years.
“I will not allow corporations to put the health and safety of Texans at risk by using potentially harmful chemicals in their clothing,” Paxton said.
“This agreement ensures that Lululemon remains accountable for enforcing its chemical safety standards.”
Paxton’s office says it will continue monitoring Lululemon’s compliance. The broader investigation into the clothing industry, however, is far from over.
His office is now actively looking into other brands — including Hanes and Fruit of the Loom — over concerns about harmful chemicals in children’s clothing.
