Estée Lauder’s Canadian arm is facing a major environmental rebuke, with Esteé Lauder Cosmetics Ltd. fined $750,000 after an Ontario court found it violated the Canadian Environmental Protection Act, 1999 (CEPA) in connection with forever chemicals used in eyeliner.
The Core Offense Under CEPA Guidelines
During a routine inspection in May 2023, Environment and Climate Change Canada (ECCC) officers found that certain Estée Lauder eyeliner products sold in Canada listed Perfluorononyl Dimethicone, a per- and polyfluoroalkyl substance (PFAS), as an ingredient. Under CEPA, using this PFAS in cosmetics is classified as a significant new activity, which triggers a legal requirement to notify the federal government before import, sale, or distribution so regulators can assess potential health and environmental risks. Estée Lauder failed to provide this prior notification, breaching subsection 81(4) of CEPA.
On June 8, 2023, after discovering the PFAS use, officials issued an environmental protection compliance order outlining steps the company had to take to come back into compliance. Estée Lauder did not fully comply with that order, resulting in a second offence under CEPA and ultimately two guilty pleas before the Ontario Court of Justice.
The Penalty And Extra Consequences
On January 13, 2026, the Ontario Court of Justice imposed a $750,000 fine on Estee Lauder Cosmetics Ltd. for the two CEPA violations. Beyond the monetary penalty, the company’s name is being added to Canada’s Environmental Offenders Registry, a public database of corporate violators of key environmental laws. Estée Lauder must also notify its shareholders of the conviction, amplifying the reputational impact in capital markets and with ESG focused investors.
Why PFAS in Cosmetics Is A Big Deal
Perfluorononyl Dimethicone is a silicone based PFAS used to improve hold, durability, and water resistance in makeup. PFAS are often called forever chemicals because they persist in the environment and can accumulate in living organisms, raising concerns about long term health and ecological effects. Canada treats the introduction of certain PFAS in consumer products as activities that must be flagged in advance, allowing authorities to decide whether restrictions, conditions, or further data are needed before products hit the market.
A Warning Shot For The Beauty Industry
Regulatory and legal commentators note that this case shows Canadian authorities are willing to use CEPA’s full enforcement toolbox, including large fines and public shaming, to police cosmetics ingredients. Non compliance with CEPA can lead not only to substantial financial penalties, but also to product recalls, seizures, binding compliance orders, and lasting damage to brand trust, especially when toxic or highly persistent substances are involved. For beauty and personal care companies selling in Canada, it’s a clear signal to tighten ingredient checks, notification procedures, and internal oversight around PFAS and other regulated chemicals.
