Lululemon Regulatory Report
SUMMARY
Lululemon must adhere to many laws. Federal laws require proper labeling for textiles at all times. Lululemon must abide by employment standards and health and safety regulations.
FEDERAL:
Federal law requires clothing to have proper labelling. The Federal Trade Commission (FTC) requires textiles to include details about “fiber content, country of origin and manufacturer.” Lululemon is responsible for labelling products appropriately. Additionally, manufacturers must include information on the clothing label about item care for customers to determine product value. The FTC also requires products not ready for sale to include “an invoice disclosing the fiber, country of origin, manufacturer or dealer identity, and the name and address of the person or company issuing the invoice.” Lululemon needs this information in order to label products.
STATE/PROVINCE:
Lululemon has factories in Canada and must comply to the Employment Standards Act of British Columbia. The company cannot hire children to complete work, must pay at least minimum wage to employees, and may be put under investigation if there are any complaints regarding working conditions and company practices. Additionally, Lululemon is required to follow the code of ethics requirements in British Columbia. They must abide by proper waste management and disposal, and are required to ensure safe and healthy workplace facilities.
LOCAL
Canada Occupational Health and Safety Regulations state that businesses are required to abide by manufacturing building regulations, health regulations of that building, and the education of employees about regulations. The British Columbia - Vancouver Zone Schedule of Wage Rates states that each municipality can create its own standards for wages, but must adhere to the afore mentioned rules also. Recently, wage rates for the “Vancouver Zone” changed so Lululemon headquarters must adhere to those laws. These acts necessitate Lululemon’s accountability for wage standardization.