Kmart accused of misleading customers with ethical supply claims
Retail giant Kmart is facing bombshell allegations it “misled customers” by sourcing clothing supplies from factories with links to slave labour.
Retail giant Kmart is facing accusations it misled customers on its ethical credentials by sourcing clothing supplies from factories in China with links to slave labour.
An Australian-based Uyghur group has filed a lawsuit against the outlet in the Federal Court, seeking to gain documents so it can see whether Kmart knowingly sourced stock from suppliers who used forced labour from those in the ethnic group.
In its ethical sourcing statement, Kmart said it aimed to provide products that respected human rights according to its ethical sourcing code which committed to abiding by international standards, including guidelines set out in the United Nations Universal Declaration of Human Rights.
The lawsuit filed by the Australian Uyghur Tangritagh Women’s Association claims Kmart included on its 2024 and 2025 factory lists two suppliers with links to the Xinjiang Uyghur Autonomous Region.
It said this region in China’s west has been well-documented for “systemic state-sponsored forced labour and other atrocities against Uyghur and other Turkic Muslim people”.
The group wants proof from Kmart that it has abided by its ethical sourcing promises regarding these suppliers and whether its public statements have been misleading or deceptive.
Kmart must ensure it is not profiting off forced labour in China, association president Ramila Chanisheff said.
“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,” she said.
The retailer risks a legal claim that it breached Australian Consumer Law by misleading and deceptive conduct if documents show it had failed to monitor the risk of it using forced labour in its supply chain.
Maurice Blackburn principal lawyer Jennifer Kanis said the firm was using this first-of-its-kind case to bring real accountability to Australian retailers.
“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 factories and suppliers and the use of Uyghur forced labour in Xinjiang,” Kanis said.
Stay informed, daily
Human Rights Law Centre associate legal director Freya Dinshaw said the case highlighted the weaknesses in Australia’s laws when members of the public are left to take companies to court on suspicions of modern slavery.
Unlike the United States, Australia has not banned imports of products made in the Xinjiang region, instead opting for a transparency approach which requires businesses to report annually on their actions to identify and address slavery risks.
Wesfarmers, the parent company of Kmart, has been contacted for comment.
–with AAP
