Kmart faces Federal Court action over alleged links to Uyghur Forced Labour in supply chains

Canberra [Australia], August 6 (ANI): Kmart Australia is facing a lawsuit in the Federal Court from a Uyghur group based in Australia that alleges the retail chain may be obtaining products from factories associated with forced labour camps in China's Xinjiang region, according to an ABC News report.
The Australian Uyghur Tangritagh Women's Association (AUTWA), led by president Ramila Chanisheff, is seeking court orders for Kmart to produce evidence substantiating its public claims of functioning as a "sustainable" and "ethical" retailer free from slavery or forced labour. This case will examine whether Kmart has engaged in misleading or deceptive practices under consumer law regarding the ethical nature of its products, particularly concerning its widely advertised "ethical sourcing code."
Unlike the United States, which has prohibited imports from Xinjiang since 2021 due to credible allegations of forced labour involving Uyghur Muslims and other minority groups, Australia does not currently restrict such imports. AUTWA, through its legal representatives at Maurice Blackburn, claims to have cross-referenced Kmart's supplier list with "numerous credible reports" and identified at least two garment suppliers supposedly tied to the use of Uyghur forced labour, as reported by ABC News.
Kmart has refuted the allegations, expressing its "disappointment" that AUTWA has pursued legal action after the company had been in dialogue with the group's attorneys for more than a year. A spokesperson for Kmart stated that the retailer has "provided extensive details of our Ethical Sourcing Program" and had extended invitations to AUTWA to meet "multiple times" to address its concerns.
"For over 15 years, we have had an Ethical Sourcing Program in place that assists us in identifying and mitigating modern slavery risks, including forced labour, within our operations and supply chains," the spokesperson added. Suppliers are surveilled via site visits, audits, and investigations when complaints arise, and Kmart claims to be the pioneering Australian retailer to publicly share its factory list online, as cited in the ABC News report.
Human rights organisations and the United Nations have accused China of perpetrating crimes against humanity and potentially genocide against Uyghurs and other predominantly Muslim ethnic groups in Xinjiang, allegations that Beijing has consistently denied.
Freya Dinshaw from the Human Rights Law Centre remarked that warnings regarding forced labour risks in China's garment industry have been raised "for a long time," emphasising that 85 per cent of China's cotton is cultivated in Xinjiang. She further noted that Australian retailers "have been on notice" regarding these dangers, according to the ABC News report.
This case also highlights concerns about the shortcomings in Australia's Modern Slavery Act. Enacted in 2018, the law mandates that large companies report on modern slavery risks but does not require them to take action against those risks. A review conducted by the Federal Government in 2023 found a 25 per cent non-compliance rate among companies and a lack of effective enforcement measures. Critics, including Professor Justine Nolan of the Australian Human Rights Institute, contend that the proposed reforms still fall short as they do not address the "root causes" nor establish a requirement to take action.
According to the Minderoo Foundation's Walk Free initiative, Australia imports $27 billion worth of goods each year that are potentially produced with forced labour. Chanisheff stated that if Kmart can demonstrate it has no connections to forced labour, AUTWA would be satisfied. However, if such connections are validated, she urged the retailer to sever ties with implicated suppliers: "You can obtain your cotton from other sources," as quoted by an ABC News report. (ANI)