Shein has discovered child labour cases among suppliers

The pureplay business said it suspended orders temporarily from the suppliers concerned until they had addressed the issue, the BBC reported.

The revelation came as Shein is thought to be considering an IPO, having grown rapidly over the last few years powered by its speedy business model and low prices.

The disclosure was made in Shein’s latest sustainability report and follows concerns previously expressed by campaigners and politicians about conditions in the retailer’s supply chain. 

Shein reported: “Both cases were resolved swiftly, with remediation steps including terminating contracts with underage employees, ensuring the payment of any outstanding wages, arranging medical checkups and facilitating repatriation to parents/legal guardians as needed.

“Following appropriate remediation, the contract manufacturers were permitted to resume business.”

Following the discovery of the cases, Shein has enhanced its supplier policies. Any child labour or forced labour violations can now lead to the immediate termination of supplier contracts.

The violations were identified during the first nine months of 2023. No cases were uncovered in the final quarter of the year.

Shein has frequently been at the centre of controversy and in the US, where it has also considered launching an IPO, it has come under attack from politicians for its perceived links to the Chinese authorities as well as ethical concerns.