ESG Enforcement Tracker

Key facts:

The Australian Uyghur Tangritagh Women’s Association (AUTWA) has commenced legal proceedings against Kmart Australia. AUTWA are demanding transparency in relation to Kmart’s alleged links with forced labour in China. The legal action centres on whether Kmart have breached Australian Consumer Law by engaging in misleading or deceptive conduct.

AUTWA have applied for a discovery order that if successful would require Kmart to produce internal documents relating to two clothing suppliers. The two clothing suppliers in question are both listed in Kmart’s factory disclosures and are alleged to be involved in forced Uyghur labour in the Chinese Xinjiang region.

Kmart publicly markets itself as an ethical business and confirmed in a statement that they take the concerns seriously. The company claims it requires all suppliers to follow its Ethical Sourcing Code that is based on internationally recognised human rights standards.

AUTWA have said that their goal is not only to hold Kmart accountable, but to put other industries on notice.

The Federal Court will consider AUTWA’s request in the coming weeks.