In the early 2000s, Lonsdale clothing became popular among some European neo-Nazis, allegedly because a carefully placed outer jacket leaves only the letters NSDA showing; one letter short of NSDAP, the acronym for Nationalsozialistische Deutsche Arbeiterpartei, the German name of the Nazi Party. Wearing a brand with no Nazi links to express Nazi sympathies helped bypass strict laws concerning the public display of Nazi symbolism. In the Netherlands, Belgium, northern France, Spain and (Germany), the term Lonsdale youth became widely used to describe teenagers with far right tendencies, and the brand was banned from certain schools in the Netherlands and Germany .
Lonsdale reacted to this trend by sponsoring anti-racist events and campaigns, and by refusing to deliver products to known neo-Nazi retailers. In 2003, the "Lonsdale Loves All Colours" campaign was launched, emphasising non-white fashion models, along with increased support for initiatives that combat racism