Legal action brought against Kmart over risk of forced labour in supply chains

Australian Uyghurs have filed proceedings against Kmart to determine whether the retail giant engaged in misleading and deceptive conduct about the use of Uyghur forced labour by some of its clothing suppliers.

The Australian Uyghur Tangritagh Women’s Association (AUTWA) has filed an application in the Federal Court to compel Kmart to produce documents demonstrating what it knows about two suppliers listed on its 2024 and 2025 factory lists with links to the Xinjiang Uyghur Autonomous Region, where – according to a joint statement – “systemic state-sponsored forced labour and other atrocities against Uyghur and other Turkic Muslim people are well-documented”.

In a statement, the AUTWA, national plaintiff firm Maurice Blackburn, and the Human Rights Law Centre (HRLC) said that the association is seeking the documents to determine whether Kmart has adequately implemented its ethical sourcing procedures regarding these suppliers, and whether Kmart’s public statements about this have been misleading or deceptive.

AUTWA is represented by Maurice Blackburn Lawyers and the HRLC.

“If the documents show that Kmart has not rigorously monitored the risk of the use of forced labour in its supply chain, it may pave the way for a legal claim that Kmart has breached Australian Consumer Law by engaging in misleading and deceptive conduct, “the statement read.

Speaking about the legal action, AUTWA president Ramila Chanisheff said: “This is a significant day for the Uyghur Australian community. We’re demanding answers from Kmart so we know whether its actions live up to its words about addressing forced labour risks in its supply chain.”

“Kmart, and all companies, must ensure they are not profiting from forced labour in China. China’s mass imprisonment, repression and forced labour of Uyghur people is well-documented. Our community has lost family members, friends and loved ones because of China’s brutal treatment of Uyghurs,” she said.

“Kmart is a go-to store for so many people in Australia. If the company has profited in any way from this sort of systematic repression, I am sure Australians would be horrified.”

Maurice Blackburn principal Jennifer Kanis added: “This case is the first of its kind in seeking to bring real accountability home to Australian retailers in relation to the risk of Uyghur forced labour infecting their supply chains. Kmart tells customers that it supports ethical sourcing and the protection of human rights – but we know there are credible links between two of its factories/suppliers and the use of Uyghur forced labour in Xinjiang.

“Documents will be sought from Kmart to determine whether Kmart engaged in misleading and deceptive conduct about the use of Uyghur forced labour. Kmart must be transparent about its potential links with Uyghur forced labour, and the court will be asked to compel Kmart to hand over information about what due diligence it has conducted on suppliers with links to Xinjiang,” she said.

“This Federal Court action is an important step in making Kmart back up its words with actions when it comes to its ethical sourcing claims.”

HRLC associate legal director Freya Dinshaw said: “Buying clothes should never come at the expense of someone else’s freedom. The alarm bells have been ringing for a long time in relation to the risk of forced labour in the Chinese garment sector, and Australian retailers have been on notice.”

“This court case is about Kmart coming clean on whether it is really doing everything it claims to be doing to ensure that its products are slavery free. This case also highlights some of the weaknesses in Australia’s modern slavery laws. It shouldn’t be left to members of the public to take companies to court and force them to open their books where there are suspicions of links to modern slavery,” she said.

“Australian companies should be legally required to investigate and prevent forced labour in their supply chains and face hard consequences if they don’t. Australia should also follow the example of other countries like Canada and the US and ban imported goods made with forced labour, so they don’t end up on our shop shelves.”