US authorities to investigate Boohoo over forced labor allegations

US authorities to investigate Boohoo over forced labor allegations

by Nandita Bhardwaj

US authorities have reportedly launched an investigation into claims of forced labor in the Boohoo’s UK-based supply chain, which might lead to the British online fashion retailer’s goods being seized at ports.

Last month the US CBP (Customs and Border Protection) body had obtained sufficient grounds for investigation after Liberty Shared, a campaign group that works against modern slavery, sent it a petition on February 1st, 2021, outlining issues with Boohoo factories located in Leicester.

Similar to the first petition, a second petition was sent on February 7th, 2021, that outlined the potential issues in clothing factories all across the district of Leicester East, where the leading online fashion retailer is believed to make nearly 60 per cent of the goods purchases.

The leading campaign group Liberty Shared states that the supply chain of Boohoo in Leicester has a very high potential for forced labor, to some extent because local police as well as government provisions for prosecution, protection, and prevention on forced labor are presently insufficient, exposing the vulnerable to a much higher risk of being exploited. 

In a statement to the stock market, Boohoo stated that the group is very much confident in the actions it is effectively taking to make sure that all its products efficiently meet the criteria of the Customs and Border Protection on averting forced labor products from entering the U.S., or in that case any of the other markets.

If CBP finds any proof reasonably showing that forced labor has been used to produce goods it could issue a WRO (withhold release order) ordering ports to detain shipments. Importers would then have three months to either submit the proof showing that the goods were not made using forced labor or to take back their goods.

Meanwhile, the shares of online fashion retailer, which recently procured the Debenhams brand to sit besides its Nasty Gal, Karen Millen, PrettyLittleThing, Oasis, Warehouse labels, were down to 4.5 per cent on Tuesday.

Source credit:

Nandita Bhardwaj

Having a marketing management post graduate degree under her belt, Nandita spent considerable time working in the field of recruitment. However, her real interest lay in playing with words and soon enough, she commenced her career in the field of content creation. Currently, she authors insightfu Read more...