Kmart accused of misleading over slave labour supplies
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
SBS Australia
07-08-2025
- SBS Australia
Australian Uyghurs launch legal action against Kmart over alleged forced labour links
While many people may think of slavery as a thing of the past, more people are living in slavery today than ever before. While large companies in Australia are required to report on how they're addressing modern slavery risks in supply chains, there are no real penalties for inaction. Now, an organisation of Uyghur women are taking matters into their own hands by launching legal action against major retailer Kmart. The group says they have a reasonable belief that Kmart is sourcing some products from supply chains linked to forced Uyghur forced labour camps. Jen Kanis, Principal Lawyer at Maurice Blackburn Lawyers, is representing the Uyghur group. "We filed a legal action in the federal court to determine if Kmart has engaged in misleading conduct about the use of forced labou r in their supply chain. And the reason why we've done that is because our client is concerned that Kmart is engaging in misleading and deceptive conduct in relation to what they say about their ethical sourcing claims." In a statement, Kmart say they have in place an Ethical Sourcing Program, which helps to identify and mitigate modern slavery risks, including the risk of forced labour. But with allegations of credible links made between their listed suppliers and factories linked to forced Uyghur labour, the legal action is calling on Kmart to share documents clarifying the matter. Ramila Chanisheff is the President of the Australian Uyghur Tangritagh Women's Association, the group filing the legal action. She says that Kmart and other major retailers need to be transparent. "The ultimate aim is to know that Kmart doesn't engage with supply chains that have Uyghur forced labour or any slave labour. And that also goes obviously for other industries as well. Now Australia, it's illegal to have modern day slavery in Australia, and yet we find that the government legislations and laws in place are not strict enough. Are not strong enough to hold industries to account, and this is where it falls short, I think. We can prove or we can say, and we can provide credible evidence that could be or to force labour and supply chains, but if the government doesn't take it to the next level, it seems that industries are getting away with it." The Uyghur people are a majority Muslim, Turkic-speaking, ethnic minority living in an area of north-west China known officially as the Uyghur Autonomous Region of Xinjiang, or East Turkestan to its Uyghur population. Since 2017, it's estimated that Chinese authorities have arrested over one million Uyghur people from the region. The Chinese Government then detains them in what officials call re-education camps... but which some experts on the matter describe as more akin to concentration camps. The involuntary transfers and forced labour of Uyghur people are well documented, enforced by Chinese officials under the guise of vocational training and poverty alleviation. Ms Chanisheff says every person in the Uyghur community has either immediate or extended family taken to camps. "All of us have been affected in some way, whether it is like our close relatives or secondary relatives or family or friends. All of us have been affected in some way when these people, those who have been taken into the concentration camps, there wouldn't be any communication with them, whatsoever. But the communication that does happen are those who are obviously left outside and we do have people in the community and are able to contact them through WeChat, which is a Chinese government communication tool, which is heavily monitored." Most people in the camps are arrested without charge. Some of the reasons given for their detention include attending services at the Mosque, sending texts containing Quranic verses, and wearing religious attire. In addition to mass arrests and surveillance, it's reported that Uyghur people are frequently subjected to forced sterilisation, sexual violence, separation of families, and torture. While data on the matter is scarce due to a lack of transparency from the Chinese Government, it's believed that tens of thousands of Uyghurs have been shipped throughout mainland China to work, without pay, in factories. The Chinese Government denies these claims. Freya Dinshaw is the associate legal director at the Human Rights Law Centre, which is also representing the Uyghur group. She says Australia has a serious problem with forced labour entering the market. "We're obviously all connected by the clothes we wear and the things we buy. And it's estimated that $27 billion worth of goods that are at high risk of being made with forced labour are imported into Australia every year. So this problem is only increasing." In Australia, the Modern Slavery Act only requires companies to report on actions to address risks of forced labour in supply chains. Unlike the U-S, which says China's treatment of the Uyghur people amounts to genocide, Australia does not ban the import of products made in Xinjiang province, instead relying on a policy of transparency. Freya Dinshaw saysthe Modern Slavery Act is not strong enough and must demand stronger corporate accountability. "The Australian Modern Slavery Act should be about protecting the people who put the clothes on our back, who pick the food that we eat and make the goods that we all consume. Yet it is a fairly weak piece of legislation in terms of only requiring reporting and not going further to require action by companies. So there's an urgent need to ensure that Australian companies have a duty to prevent modern slavery so that they're legally required to investigate and address modern slavery in their supply chains and face hard if they don't. And Australia should also follow the lead of other countries like Canada and the US and banned goods made with forced labor from ending up on our shop shelves so that we can all be confident that the clothes we wear and the things we have aren't made at the expense of someone else's freedom." If, through the legal action, it is revealed that Kmart is knowingly sourcing products from factories with links to forced labor, they could then be found to have engaged in misleading marketing by advertising ethical sourcing of all its products. If this is the case, however, they would not face penalties for sourcing products made by slave labour, just for claiming they did not. Jen Kanis says while this legal action is only preliminary, it could have wider impacts on the retail industry. "So I guess the outcome of this case is about the documents, but what this case may lead to is a misleading and deceptive conduct claim. And I think that that has implications all retailers who make claims about ethical sourcing and being an ethical business. And it will mean that they won't be able to make those claims unless they can actually substantiate them." Ramila Chanisheff says cheap clothing and strong economic ties with China should not come at the cost of human rights. "We need to make sure that every product that hits our shelves is slavery free, and the owners should not be on the consumer because the consumer cannot do deep diving as to how this product is made. So it needs to sit with the industry, it needs to sit with the retailers, and it needs to sit with the government to ensure that Australian citizens or any other citizens, the world citizens, are not always questioning whether our product is being used at the expense of another person's life."
7NEWS
05-08-2025
- 7NEWS
Kmart dragged into landmark legal case over alleged links to Uyghur forced labor in China
In an Australian legal first, Uyghur community leaders have launched Federal Court action demanding transparency from retail giant Kmart over its potential links to forced labour in China. The Australian Uyghur Tangritagh Women's Association (AUTWA) has filed a motion demanding Kmart hand over internal documents related to two of its clothing suppliers allegedly involved in forced Uyghur labour in the Xinjiang region. Both suppliers are listed in Kmart's 2024 and 2025 factory disclosures, AUTWA said. The legal action, led by Maurice Blackburn Lawyers and supported by the Human Rights Law Centre, aims to test whether Kmart's ethical sourcing claims hold up under scrutiny. Speaking outside the court in Melbourne on Tuesday, AUTWA President Ramila Chanisheff said the case marks a historic milestone. 'We just filed a document into the Federal Court asking for records from Kmart about two supply chains that could be linked to Uyghur forced labor,' she told 'It is the first of its kind in Australia to bring a case against an Australian retailer, and it's not just a small retailer, it's actually a major. 'We want to make sure that the products that are made in China and sold in Kmart are not linked to forced labour.' Kmart publicly markets itself as an ethical business. 'We aim to provide great products at the lowest prices for our customers while respecting human rights,' the retailer states on its website. Kmart said it is continually working to improve its ethical sourcing standards and processes, and is collaborating with suppliers, NGOs, trade unions, and government representatives to help improve working conditions in the regions where it sources its products. The court action now centres around whether the company may have breached Australian Consumer Law by engaging in misleading or deceptive conduct about the sourcing of its products. AUTWA is seeking access to documents that could demonstrate what Kmart knew — or should have known — about the origins of products made in factories with ties to Xinjiang, where widespread human rights abuses, including state-sponsored forced labour, have been well-documented. 'If it's found that Kmart's products are linked to forced labour, they must divest from those supply chains, not just in Xinjiang, but across China, where Uyghur people are often trafficked into mainland labour camps,' Chanisheff said. The goal is not only to hold Kmart accountable, but to put other industries on notice, she added. 'Australians deserve to make informed choices.' Retailers on notice Maurice Blackburn principal lawyer Jennifer Kanis, who is leading the case, said the legal action aims to hold Kmart accountable for its ethical sourcing claims. She said the company must be transparent about its supply chain practices, especially given the known risks of forced labour in Xinjiang. 'Kmart tells customers that it supports ethical sourcing and the protection of human rights — but we know there are credible links between two of its factories and the use of Uyghur forced labour in Xinjiang,' Kanis said. 'Documents will be sought from Kmart to determine whether it engaged in misleading and deceptive conduct about this issue.' She added the Federal Court will be asked to compel Kmart to provide evidence of what due diligence it has conducted on suppliers with links to the region. Associate legal director at the Human Rights Law Centre Freya Dinshaw said the case underscores significant weaknesses in Australia's approach to modern slavery. 'The alarm bells have been ringing for a long time in relation to the risk of forced labour in the Chinese garment sector, and Australian retailers have been on notice,' she said. 'This court case is about Kmart coming clean on whether it is really doing everything it claims to be doing to ensure that its products are slavery free.' Dinshaw argued it should not be up to the public to force companies into transparency through legal action and called for stronger laws that require businesses to investigate and prevent forced labour. She also noted that, unlike countries such as the US and Canada, Australia has not banned the importation of goods made with forced labour, allowing them to reach store shelves unchecked. What happens next? The Federal Court will consider AUTWA's request in the coming weeks. If successful, the outcome could pave the way for further legal action against Kmart or other major retailers. 'Kmart, and all companies, must ensure they are not profiting from forced labour in China.,' Chanisheff said. The case is expected to fuel growing public pressure on retailers to lift the veil on their offshore operations.
Sydney Morning Herald
05-08-2025
- Sydney Morning Herald
‘Let us see the audits': Kmart faces legal battle over alleged links to Uyghur forced labour
Kmart has defended its ethical sourcing practices after being served with a court challenge to provide documents on how it has dealt with two clothing factories that have been linked to forced labour in Xinjiang, an autonomous territory in north-western China. The Australian Uyghur Tangritagh Women's Association (AUTWA) filed a Federal Court application on Monday seeking documentation from Kmart about what it knew of two clothing suppliers linked to the Xinjiang Uyghur Autonomous Region, where the Chinese government has systematically persecuted the Uyghur population and other Turkic minorities. Represented by law firms Maurice Blackburn and the Human Rights Law Centre, AUTWA is looking to determine whether Kmart followed its ethical sourcing procedures and monitored risks to mount a future legal case that would allege Kmart breached consumer law by making misleading and deceptive statements. In a statement, a Kmart spokesperson said the retailing giant had been corresponding with AUTWA's lawyers for more than 12 months and had provided 'extensive details' of its ethical sourcing program that had been in place for 15 years. Loading 'We invited the AUTWA to meet with us several times to help us understand their concerns,' said the Kmart spokesperson. 'Suppliers in the Kmart ethical sourcing program are regularly monitored through activities including our site visits, audit programs and investigations if we receive any reports or complaints of concern. 'Where we learn of an alleged non-compliance with our code through an audit, site visit or complaint, or by a worker in a supplier's factory, we take action to investigate and remediate the issue, working collaboratively with the supplier. 'When remediation isn't possible due to the supplier's refusal to do so, or repeated failures to make meaningful changes, we will exit the relationship.' However, Maurice Blackburn principal lawyer Jennifer Kanis said the Australian retailer's response during the 12 months of correspondence was 'not satisfactory' because it had repeated public assertions about its ethical sourcing without providing any evidence.
