Kmart Denies Sourcing Products from Chinese Factories Linked to Forced Labour

In a recent development, Kmart has denied allegations that it sources products from factories in China linked to forced labour. The retailer faces legal action from the Australian Uyghur Tangritagh Women’s Association (AUTWA), which claims there is a reasonable belief that Kmart may be sourcing some of its products from such facilities. This legal case is testing whether Kmart is engaging in misleading or deceptive conduct under consumer law concerning the ethical nature of its products.

Ramila Chanisheff, representing AUTWA, has requested documents from Kmart to prove its claims of operating a sustainable and ethical company. The court action is seeking information related to Kmart’s supply chains that could be linked to the Xinjiang region, where human rights groups and the United Nations have raised concerns about forced labour involving Uyghur Muslims and other minority groups.

In response, Kmart stated that it has been in correspondence with AUTWA’s lawyers for over 12 months and has provided extensive details about its Ethical Sourcing Program. The company emphasized its commitment to identifying and mitigating modern slavery risks, including forced labour, in its operations and supply chains. Kmart also highlighted that it is the first Australian retailer to publicly disclose its factory list on its website for transparency.

However, human rights groups and legal experts argue that Australia’s current laws are insufficient to address the issue of forced labour. Professor Justine Nolan of the Australian Human Rights Institute pointed out that while Australia introduced the Modern Slavery Act in 2018, the law primarily imposes mandatory reporting obligations on large companies without requiring them to act on those findings. A 2023 review confirmed that the law has not led to meaningful change for people at risk of modern slavery.

Freya Dinshaw from the Human Rights Law Centre noted that Australia continues to import an estimated $27 billion worth of goods at risk of forced labour annually, with no laws preventing the importation of such goods. Ms. Chanisheff, who was born in Xinjiang but raised in Australia, believes that consumers can make a difference by demanding greater transparency and accountability from companies.

The Australian Government has released a consultation paper aiming to strengthen the Modern Slavery Act, but experts argue that the proposed reforms are not sufficient. Attorney-General Michelle Rowland stated that the government is committed to combating modern slavery and implementing measures to support Australian businesses in eliminating modern slavery risks.

As this legal battle unfolds, the outcome could set a precedent for corporate accountability and transparency in supply chains. If Kmart is found to be linked to forced labour, AUTWA has called for the company to divest from those suppliers. The case highlights the ongoing struggle to address forced labour in global supply chains and the need for stronger legal frameworks to protect workers and ensure ethical business practices.