Yoga-inspired clothing company Lululemon Athletica is to remove all health claims from lines using its VitaSea fabric as controversy over its seaweed content continues.

The Canadian company last week moved to quash claims in the New York Times that its VitaSea clothing fabric contained no seaweed after the newspaper conducted laboratory tests which found properties no different to those of ordinary cotton clothing.

Lululemon has continued to stand by the seaweed claims, but has now decided to remove all references to VitaSea's therapeutic and performance attributes from labelling in the Canadian market. Labelling in international markets will also be changed.

The company had previously claimed that the fabric released amino acids, vitamins and minerals into the skin upon contact with moisture, bringing anti-inflammatory, anti-bacterial, stress-reducing, hydrating and detoxifying effects.

"We are altering the labels on our VitaSea products in our Canadian stores, in co-operation with The Competition Bureau of Canada, to remove references to the therapeutic and performance attributes of the VitaSea technology," said Lululemon CEO Bob Meers.

"It is important to note that the Bureau takes no issue with the material content as described on our care and content labels. Independent testing has confirmed the presence of vitamins, minerals and amino acids in the VitaSea fabric."

The company is also undertaking a review of the therapeutic attributes described on all product hang-tags, Meers added. Shares in Lululemon dipped by more than 8% in Monday (19 November) trading after the company announced the moves.