Chemtrade sues competitor K2 and PR firm Crestview over 'astroturfing' campaign
Chlorine manufacturer alleges competitor orchestrated a covert online campaign using fake grassroots group Keep North Vancouver Safe to block rezoning approval.
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Chemtrade is suing a competitor and a public relations firm, alleging they orchestrated a covert and defamatory online campaign to sabotage a critical rezoning decision in the District of North Vancouver.
In July, District council voted to approve Chemtrade's application to allow continued production of chlorine at its Maplewood plant beyond 2030, when its current lease with the Vancouver Fraser Port Authority was set to expire. Beginning in June 2024, a group calling itself Keep North Vancouver Safe ran an online campaign on Facebook, Instagram and via its own website to generate public opposition.
In the civil claim, Chemtrade alleges: "The online campaign was secretly orchestrated by K2. K2 retained Crestview to carry out the online campaign." K2 Pure Solutions and Crestview Communications are named as defendants.
One ad featured a skull and crossbones over chemical containers with the warning: "Chemtrade wants to keep putting you in danger and reverse the 2030 decision." That ad was seen between 45,000 and 50,000 times. Another Crestview ad depicted an orange cloud radiating over North Vancouver, Burnaby and Vancouver with text reading: "Chemtrade is trying to overturn a decision meant to keep you safe. Let the district know you don't support chlorine production in your backyard" and "Stop Chemtrade and save our community." That ad reached upwards of 250,000 people.
Chemtrade argues the statements were false and "made maliciously without just cause," with intent to injure its business. The company claims damages including expenses incurred to counter the campaign, loss of opportunity and goodwill, and reputation damage.
In the suit, Chemtrade characterizes the conduct as "high-handed and highly reprehensible" that "departs from ordinary standards of decent behaviour." The defendants, Chemtrade argues, "carried out a covert campaign under the false guise of a grassroots public interest organization, a practice colloquially referred to as 'astroturfing' with the intent of harming Chemtrade's business and reputation to benefit a competitor."
None of the claims have been tested in court. Neither defendant has filed an official response. David Cynamon, K2 Pure Solutions executive chairman, said Wednesday: "We are unaware of this suit as we have not been served, and won't provide comment on something that we have not had the opportunity to study." Crestview Communications did not respond to a request for comment. In 2024, a CBC News and Investigative Journalism Foundation probe exposed the same covert campaign, tracing it to a Toronto lobby firm working for K2.
The facts
What rezoning decision was Chemtrade seeking approval for?
Chemtrade sought approval to continue chlorine production at its Maplewood plant beyond 2030, when its lease with the Vancouver Fraser Port Authority was set to expire. The District of North Vancouver council voted to approve this application in July.
How many people saw the ads in the campaign?
One ad featuring a skull and crossbones was seen between 45,000 and 50,000 times. Another ad depicting an orange cloud over North Vancouver, Burnaby and Vancouver reached upwards of 250,000 people.
Who did Chemtrade name as defendants in the lawsuit?
Chemtrade named K2 Pure Solutions and Crestview Communications as defendants, alleging K2 secretly orchestrated the online campaign and K2 retained Crestview to carry it out.
What practice does Chemtrade say the defendants engaged in?
Chemtrade characterizes the defendants' conduct as 'astroturfing'—a covert campaign carried out under the false guise of a grassroots public interest organization rather than a competitor-backed effort.
