Walmart and Centric Brands Investigate Supply Chains

Walmart and Centric Brands Investigate Supply Chains

Walmart and Centric Brands are carrying out investigations into their deliver chains in Cambodia after allegations emerge that Inmates at the biggest women’s jail withinside the United States of America had been illegally hire to provide clothes for export. These allegations were bring forward by Reuters and prompt inquiries from the American Apparel and Footwear Association (AAFA), an industry group focus on labor practices. The allegations raise concerns about labor exploitation, illegal trade practices, and compliance with international labor standards.

Allegations of Prison Labor

Inmates at Correctional Center 2 (CC2), close to Phnom Penh, have been allegedly generating clothes and fabric merchandise for export, which includes to the U.S., as a part of a rehabilitation program. Both the U.S. And Cambodia limit global alternate of products made via way of means of convicts. The International Labour Organization (ILO) lets in jail exertions as lengthy because it isn’t always force.

Response and Investigations

The AAFA sent letters to Cambodian officials expressing concerns about these allegations, which were review by Reuters. The letters did now no longer call the agencies involved. Both Walmart and Centric Brands are now investigating their supply chains in response to these allegations. Walmart expressed its concerns about forced labor and stated that its investigation is ongoing. Centric Brands introduced it had “located on hold” imports from a Cambodian manufacturing facility and might terminate any dealer located the usage of jail labor. Centric Brands has also terminated its relationship with a factory, without disclosing its identity.

Items Allegedly Linked to Walmart and Centric Brands

Former CC2 inmates supply Reuters with a Walmart-branded purchasing bag and a polo blouse with IZOD branding, which they declare have been made withinside the jail factories. These items reportedly had information indicating that they were destined for the U.S. and Canada. Trade facts from information companies Panjiva and ImportGenius showed the vacation spot however didnot provide information about the factory of origin or supply-chain relationships within Cambodia.

Concerns and Implications

The persistence of pro-Wagner content on Meta’s platforms despite the ban raises concerns about content moderation and brand safety. This incident highlights the difficulties platforms face in preventing the spread of content that glorifies dangerous organizations. The response from Walmart, Centric Brands, and other U.S. companies to the allegations of prison labor in Cambodia underscores the complexities of global supply chains and the need for enhanced monitoring to ensure compliance with labor standards and legal regulations.