Shein's Child Labor Revelations Prompt Scrutiny Amidst IPO Plans

Fast-fashion giant Shein revealed two instances of child labor at its suppliers, echoing findings from 2023. Following extensive audits, the company pledged zero tolerance towards such practices. The disclosure comes as Shein prepares for a public offering in London, strengthening oversight on its global supply chain.

Fast-fashion retailer Shein admitted to finding two cases of child labor among its suppliers last year, mirroring its 2023 findings. This revelation surfaced in a letter to British lawmakers, reflecting the outcomes of increased audits of its mainly China-based third-party suppliers. The admittance occurs as Shein gears up for an initial public offering in London.

The company's transparency comes amid prior allegations of worker abuse within its supply chain. A cross-party Business and Trade Committee had interrogated Shein's general counsel, Yinan Zhu, in person earlier this year. The letter revealed that one of the incidents involved an 11-year-old during her summer holiday at a factory where her parents worked.

Shein emphasized its stringent zero-tolerance policy toward child labor, evidenced by terminating business with the implicated supplier. With around 4,300 audits conducted in 2024 covering 317,000 workers, Shein asserts their commitment to eradicating such cases from their supply chain and ensuring compliance across their global network, including facilities in China, Brazil, and Turkey.

(With inputs from agencies.)