Shein is under fire once again after it announced in its latest sustainability and social impact report that it discovered multiple cases of child labor in its supply chain in 2023.
The news comes after Swiss human rights advocacy group Public Eye alleged in May that the company's suppliers continued to engage in exploitative labor practices despite promises to do better.
What's happening?
The fast fashion giant revealed that internal audits last year from the first to third quarter found two instances of child labor in its facilities. In the report, Shein says that it halted all orders from the manufacturers with the violations.
The suppliers were given 30 days to remedy the situation, including by paying out wages. According to Shein, the contractors also "strengthened their processes for screening new hires" and were allowed to resume operations.
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Why is this concerning?
As the BBC noted, even though Shein itself laid bare the child labor violations, the reveal came as the company was expected to begin selling shares on the stock market — with the implication being that this self-reporting is to get the news out now rather than risk it leaking after the initial public offering. In June, the news organization reported that the company had filed paperwork with regulators in the United Kingdom.
"Slave labor, sweat shops, and trade tricks are the dirty secrets behind Shein's success," Florida Sen. Marco Rubio, a Republican on the U.S. Senate Intelligence Committee, wrote to U.K. Chancellor Jeremy Hunt at the time, warning against the move, according to the BBC.
The reported child labor violations are the latest red flag for the Chinese company after years of troublesome allegations and apparent failure to remedy the issues.
Public Eye's May report was a follow-up after a 2021 investigation found that Shein abused workers' rights with minimum 75-hour workweeks and dangerous factory conditions. The advocacy group discovered many of the same issues at different suppliers two years later.
The company has also been accused of misleading consumers about its labor practices and environmental impact as a fast fashion brand that mass produces low-quality items with short shelf lives, contributing to the world's 100-plus million tons of textile waste dumped in landfills annually.
And Shein is not the only brand under fire for fast fashion practices. Last month, the Seoul Metropolitan Government in South Korea announced that Shein, Temu, and AliExpress were all found selling clothes containing high levels of chemicals and heavy metals linked to numerous health problems. And Rubio has called out Temu for alleged labor violations in equal measure, seeking to block imports of any product that benefited from forced labor.
What is Shein doing about child labor in its supply chain?
Skepticism abounds regarding the brand's ability to maintain safe working conditions following repeated reports of human rights violations, but Shein says in its sustainability report that its fourth-quarter audits revealed no cases of child labor.
"We remain vigilant in guarding against such violations going forward, and in line with current policies, will terminate any noncompliant suppliers," the company stated.
The announcement of recent cases of child labor may inspire some people to say goodbye to fast fashion altogether. Shopping in a growing secondhand market is one way to maintain your style at a wallet-friendly price point while avoiding brands with questionable business practices.
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