The Australian Uyghur Tangritagh Women’s Association (AUTWA) is seeking documents to determine whether Kmart engaged in misleading and deceptive conduct about the use of Uyghur forced labour by some of its clothing suppliers.
In August, AUTWA filed an application in the Federal Court to compel Kmart to produce documents demonstrating what it knows about two of its suppliers’ links to the Xinjiang Autonomous Uyghur Region of China. In China, there is well documented evidence of systemic state-sponsored forced labour and other atrocities against Uyghur and other Turkic Muslim people, with UN experts last month expressing concerns that the treatment may amount to crimes against humanity.
Kmart markets itself as an ethical business. AUTWA seeks the documents to determine whether Kmart has adequately implemented its ethical sourcing procedures regarding two of its suppliers, and whether Kmart’s public statements about this have been misleading or deceptive. This challenge was launched after Kmart’s repeated refusals to give AUTWA the information it had requested.
If the documents show that Kmart has not rigorously monitored the risk of the use of forced labour in its supply chain, it may pave the way for a legal claim that Kmart has breached Australian consumer law by engaging in misleading and deceptive conduct.
The case is being heard as the Australian Government conducts further targeted consultations into strengthening modern slavery laws, including considering whether to require companies to investigate risks of modern slavery within their supply chains.
AUTWA is represented by Maurice Blackburn Lawyers and the Human Rights Law Centre.
“This legal challenge is important for the Uyghur community. We’re demanding answers from Kmart so we know whether its actions live up to its words about addressing forced labour risks in its supply chain.
“Kmart and all companies must ensure they are not profiting from Uyghur forced labour in China. China’s mass imprisonment, repression and forced labour of Uyghur people is well-documented. Our community has lost family members, friends and loved ones because of China’s harsh treatment of Uyghur people.
“Kmart is a go-to store for Australians. If the company has profited in any way from this sort of systematic repression, I am sure Australians would be horrified.”
“Today’s hearing is the first of its kind in seeking to bring real accountability home to Australian retailers regarding the risk of Uyghur forced labour infecting their supply chains.
“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 suppliers and the use of Uyghur forced labour in Xinjiang.
“Kmart holds the information needed for AUTWA to determine whether Kmart engaged in misleading and deceptive conduct about the use of Uyghur forced labour. Over a period of more than 12 months, Kmart repeatedly refused to provide AUTWA with any of the requested documents.
“Kmart must be transparent about its potential links with Uyghur forced labour, and today AUTWA is asking the Court to compel Kmart to hand over information about what due diligence it has conducted on suppliers with links to the Uyghur region.
“This Federal Court action is an important step in making Kmart deliver on its promises when it comes to its ethical sourcing claims.”
“Today the Federal Court will hear our client’s well-founded concerns that Kmart could have sourced goods from high-risk suppliers with links to the Uyghur region, where forced labour is rife. This case is ultimately about whether Kmart walks the talk on respecting human rights in its supply chain.
“The case also highlights some of the weaknesses in Australia’s modern slavery laws. It shouldn’t be left to members of the public to take companies to court and force them to open their books where there are suspicions of links to modern slavery.
“Australian companies should be legally required to investigate and prevent forced labour in their supply chains and face hard consequences if they don’t. Australia should also follow the example of other countries like Canada and the US, and ban imported goods made with forced labour so they don’t end up on our shop shelves.”
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