Environment and Climate Change Canada (ECCC) announced on February 2, 2026, that it fined Estee Lauder Cosmetics Ltd. $750,000 for two violations of the Canadian Environmental Protection Act, 1999 (CEPA). ECCC states that the offences were related to the failure to inform the government regarding a significant new activity and the failure to comply with a compliance order. In addition to the fine, the Ontario Court of Justice ordered the Company to notify its shareholders about the conviction. The fine will be directed to the Government of Canada’s Environmental Damages Fund. According to ECCC, in May 2023, as part of a routine inspection, ECCC enforcement officers discovered that the Company was selling some eyeliner products that had perfluorononyl dimethicone listed as an ingredient. ECCC notes that perfluorononyl dimethicone is a per- and polyfluoroalkyl substance (PFAS) and that the importation, sale, and distribution of cosmetic products that have perfluorononyl dimethicone as an ingredient are considered a “significant new activity” under CEPA. The Company was required to notify ECCC before the activity occurred, allowing it to assess potential health or environmental risks in advance. On June 8, 2023, ECCC issued an environmental protection compliance order to the Company that outlined steps the Company was to take to become compliant with CEPA’s “significant new activity” requirements. ECCC states that “[u]ltimately, the company did not comply with the order, resulting in a violation of subsection 238(1) of the Act.”
