Shein faces criticism for failing to address forced labour concerns

January 9th, 2025

Shein has faced backlash after MPs criticised the online fashion retailer for its lack of transparency regarding the origin of its cotton and raised concerns about potential links to forced labour practices, Investment Week reports.

During a Business and Trade Select Committee hearing, Yinan Zhu, general counsel for EMEA at Shein, was criticised for avoiding questions about forced labour concerns in the company’s supply chain and for failing to address the origins of its cotton sourcing.

While committee chair Liam Byrne said that the evidence session had been helpful, MPs were left “pretty horrified” by the Shein representatives' failure to provide evidence that addressed concerns over forced labour practices.

He also noted that representatives were unable to answer basic questions, such as where products were made or the working conditions workers face, adding that their reluctance to respond is "frankly bordered on contempt of the committee."

The backlash comes amid Shein’s plans to launch an IPO, which is awaiting approval from the Financial Conduct Authority. The fashion giant intends to list on the London Stock Exchange (LSE) in the first half of the year, with hopes of completing the IPO by Easter, though the timeline remains uncertain.

This criticism could present additional challenges for Shein’s listing, as Byrne remarked that for a company selling around £1 billion of products to UK consumers and seeking to list on the LSE, it has provided "almost zero confidence" in the integrity of its supply chain.

This is the latest criticism of Shein as the Italian Competition Authority opened an investigation into the retailer for misleading claims abouts sustainability practices on its website.

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