Shein, a popular bargain bin retailer that sells clothing, accessories and home goods, said it discovered two cases of child labor between the first and third quarters of 2023.
In its latest sustainability report, released last week, Shein said the findings were informed by the company’s audits of suppliers the brand works with. Shein said it defines a child as anyone under the age of 15; employing children under 16 is illegal in China.
“Upon discovery of these violations, SHEIN suspended the contract manufacturer’s orders and conducted an investigation,” the company wrote. Under the policy at the time, manufacturers had 30 days to address the violations by “terminating the contract with the minor.” employee’s contract, ensuring payment of all unpaid wages, arranging medical examinations, and assisting with repatriation of parents/legal guardians as needed.” Shein said it would impose stricter rules on contractors found to be using child labor starting in October 2023 – and will now terminate those suppliers’ contracts immediately.
The company said it did not detect any cases of child labor in the fourth quarter of 2023.
Shein’s fragmented supply chain means that the products sold on its website are not all made under one roof or by one company: The brand works with a network of manufacturers, which makes it harder to track working conditions and potential labor violations. The company also operates a marketplace that hawks products from third-party sellers.
The cheap, fast products that Shein (and competitors like Temu) sell come with an ugly truth: the workers who make the products are taken advantage of. Shein said it would spend $15 million in 2022 to renovate the factory and step up audits after an investigation found some workers were working illegally long hours. But follow-up reports found that little had changed: A report earlier this year by the human rights advocacy group Public Eye found that some Chinese workers said they were working 75 hours a week. One worker told the group that they work from 8 a.m. to 10:30 p.m. and only get one day off per month.
Shein exists primarily online, with influencers posting videos promoting the brand and raving about its “affordable prices.” As the company strengthens its foothold in the United States, it has tried to shed some of its negative public image by recruiting influencers to tour factories in China and hosting in-person pop-up events open to the public. But Amazon’s rivals have struggled to fend off ongoing scrutiny of their business practices. Some experts say Shein’s plans to go public in the U.S. this year are looking increasingly unlikely. The company has reportedly recently applied to list in London Wall Street Journal. The company was valued at $66 billion last year.
