Kmart Australia Faces Legal Battle Over Alleged Forced Labour Ties

In a significant legal move, Kmart Australia is being sued by the Australian Uyghur Tangritagh Women's Association (AUTWA) for allegedly sourcing products from factories tied to forced labour camps in China's Xinjiang. The lawsuit, filed in the Federal Court, seeks evidence from Kmart supporting its claims of being a sustainable and ethical retailer.

The U.S. banned imports from Xinjiang in 2021 over forced labour allegations. Australia, however, has not implemented similar restrictions. AUTWA, backed by legal firm Maurice Blackburn, claims its investigation linked at least two of Kmart's garment suppliers to forced Uyghur labour. Kmart countered these claims, expressing disappointment in AUTWA's legal route despite ongoing discussions.

Kmart asserts its dedication to ethical sourcing, involving audits and public listing of its factory suppliers. This case underlines Australia's Modern Slavery Act flaws, which critics say lack enforcement and action mandates. As $27 billion of goods entering Australia could involve forced labour, calls for stricter measures intensify.

(With inputs from agencies.)