On January 13, 2026, the Ontario Court of Justice fined cosmetics company Estée Lauder Cosmetics Ltd. CAD 750,000 after it admitted to two violations of the Canadian Environmental Protection Act (CEPA). These included both failure to report a “significant new activity” and failure to comply with an official compliance order.

Why the penalty was imposed

During a routine inspection in May 2023, Canadian environmental authorities discovered that Estée Lauder was selling eyeliner containing perfluorononyl dimethicone, a substance belonging to the PFAS (“forever chemicals”) group, which is particularly durable and poses potential environmental and health risks. The use of such substances is considered a “significant new activity” and must be reported to the government in advance. Estée Lauder failed to comply with this obligation.

Consequences for the company

In addition to the heavy fine, the court ordered Estée Lauder to

• inform its shareholders about the conviction,
• and the company will be added to the Environmental Offenders Registry – Canada’s register for environmental violations.

The fine will go to the Environmental Damages Fund, which supports projects to restore damaged ecosystems.

Why this case is important

• PFAS are subject to stricter regulation worldwide, and authorities are increasingly focusing on transparency and product control.
• Cosmetics manufacturers are not the only ones who risk heavy fines and reputational damage if they fail to report ingredients correctly.
• Consumers are paying increasing attention to pollutant-free products, which means that cases like this are gaining significant attention.

Conclusion

This case shows how strictly Canada is now cracking down on PFAS violations. For international (cosmetics) manufacturers, this is a clear signal that transparency, product testing, and timely reporting to authorities are essential to avoid costly sanctions and damage to reputation.

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You can read the Canadian government’s announcement here.