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The burgeoning online fashion empire Boohoo and many of its suppliers face the possibility of an import ban in the United States due to widespread accusations about the use of slave labor.
The US Customs and Border Protection has seen enough evidence to launch an investigation following requests from a British lawyer on the campaign trail.
Duncan Jepson, who runs Liberty Shared, a modern-day anti-slavery campaign group, says Boohoo is not doing enough to stop forced labor at the Leicester factories that make much of his clothing.
Jepson said: “The evidence from Boohoo and forced labor is quite compelling. I think it will be a wake-up call for British institutions on how they are handling modern day slave labor, particularly in a community like Leicester East.
“What we would like all of us, those of us interested in improving working conditions, is for Boohoo to really get acquainted with the governance of their supply chain to ensure there is no wage theft and that people have the right contracts. .
“You must look at the 11 indicators that the International Labor Organization sets for forced labor and see if they are met.”
Last year, Boohoo’s sales in the United States were 263.6 million pounds, more than a fifth of the company’s total revenue.
In its global war on slave labor, the United States already bans many products, including certain Japanese video games, diamonds mined in Zimbabwe, and furniture made in a Mexican jail.
Boohoo said auditors and investigators have found no evidence of modern slavery.
The US Tariffs Act of 1930 “prohibits the importation of goods extracted, produced or manufactured, in whole or in part, in any foreign country through forced or contract labor, including forced child labor. Such goods are subject to exclusion and / or seizure, and may lead to a criminal investigation of the importer or importers. “
Former UK anti-slavery commissioner Kevin Hyland said: “If you identify this in the supply chain in Leicestershire, the potential penalties for not trading in the US are huge.
“The purpose of the petitions is very clear, to demonstrate to companies that they believe they can benefit from forced labor and the exploitation of others that they cannot and will face a penalty that they cannot trade in the world’s largest economy. .
“But what it will also do is create a gap for good companies to come in and pay people properly.”
Manchester-based Boohoo has 14 million customers online and is believed to be the fastest growing fashion retailer in the UK. It sells clothes, shoes, accessories and beauty products to a predominantly female and young market.
The company has expanded rapidly since it began in 2006 and has offices in Australia and California. Last year, its sales rose 40% to £ 1,235 million, with profit of £ 92.2 million.
But last summer, a Sunday Times investigation exposed evidence of illegally low wages and poor working conditions in Boohoo’s supply chain in Leicester, where 40% of its clothing was manufactured.
The government established a multi-agency task force, including the National Crime Agency, to investigate the allegations.
In response, Boohoo asked attorney Alison Levitt QC to review the labor practices of her clothing manufacturers, and she produced a damning report that found the allegations of poor working conditions to be “substantially true.”
Their review prompted Interior Minister Priti Patel to say: “I am deeply concerned by the findings of this review, regarding illegal and unsafe working conditions.”
The company has expanded rapidly since it began in 2006 and has offices in Australia and California.
Saeed Khilji, president of the Leicestershire Textile Manufacturers Association, said a US import ban would hurt, but insisted that working conditions in factories had improved.
He said: “If the US government took action and if it has enough evidence to do so, there will be an effect, but I’m sure there won’t be a problem in Leicester now. I’m 100% sure.”
Boohoo said in a statement: “For the past eight months we have been working closely with UK law enforcement agencies and it is important to note that the auditors and investigators who are forensic examining suppliers in Leicester have not found evidence of modern slavery.
“We have taken action against 64 suppliers that did not meet the group’s standards in the levels of transparency required by the business.
“If we discover any evidence of modern slavery, we would immediately disclose it to the relevant UK authorities.
“We are confident in the actions we are taking to ensure that all of our products meet and exceed CBP (US Customs and Border Protection) criteria to prevent the product of forced labor from entering the US (or any of our markets).
“The Group continues to make excellent progress as it works to implement the Review’s recommendations and improve our supply chain in Leicester.”
