An Australian-based Uyghur group filed a federal case against retail giant Kmart. They claim Kmart has products on their shelves that come from factories linked to Uyghur forced labor. Unlike the United States and some European nations, Australia does not currently prohibit goods made in the Uyghur Region from entering the country. That leaves it up to individual retailers to monitor and maintain a slavery-free supply chain. And regardless of the outcome, this new case underlines that current legislation just isn’t good enough.
Walk the walk, don’t just talk the talk
On its website in Australia, you can find videos and a description of Kmart’s Ethical Sourcing Program. A program it says helps “identify and mitigate modern slavery risks” in their operations and supply chains. The policy claims the retailer regularly conducts site visits and program audits of their suppliers. They also claim an investigation follows if problems are found. Jennifer Kanis, a solicitor on the case, said they were hoping to compel Kmart to, “prove their public position.”
Kanis shared with ABC News Australia,
(This) case is testing whether Kmart is engaging in misleading or deceptive conduct under consumer law in relation to the ethical nature of the products, with the company’s “ethical sourcing code” listed throughout its website.
The case against Kmart also shines a light on how far behind Australian laws have fallen when it comes to forced labor, particularly from the Uyghur Region. In 2018 when it passed the Modern Slavery Act, Australia took the legislative lead over Europe and the US. But even back then, the law was weak.
Mandatory reporting obligations to identify modern slavery risks primarily only fall on large companies. Even worse, there is no obligation to act on those findings. The link to Uyghur forced labor is undeniable. That’s why the US and some countries in Europe have begun banning any goods from the Uyghur Region. Meanwhile, Australian modern slavery laws have fallen far behind.
Australian law is all bark, no bite
In 2023 a Federal Government review found a quarter of Australian companies were not complying with their basic reporting requirements. The report cites the reason as “no significant enforcement framework.” According to Professor Justine Nolan of the Australian Human Rights Institute Australia, even with proposed new reforms the law would still not tackle the root causes of the problem:
“A non-compliance rate of 25 percent just by false reporting or not reporting shows that the laws we currently have are not sufficient and that we really do need reforms.”
Nolan says it is time to introduce “an obligation to act, not just an obligation to report.” Other countries have already implemented effective legislation and import bans. And if nothing is done, Australia risks becoming a “dumping ground” for goods made with forced labor just like the UK. In the seven years since 2018 when the Modern Slavery Act was passed in Australia no significant reforms have been made. Nolan says, “Seven years is a long time to wait for people who are working in modern slavery every day.”
End Australia’s forced labor free-for-all
Meanwhile Australia continues to import an estimated $27 billion worth of goods at risk of forced labor annually according to a 2023 report from human rights group Walk Free. And with no laws to prevent the import of such goods, cases like the one against Kmart aim to hold companies accountable.
And while the court waits for documents from Kmart to prove its claims about operating a “sustainable” and “ethical” company and keeping its products free from slavery or forced labor- with no real obligation on the books, other companies can continue business as usual.
Join us in calling for companies to sever their ties to the Uyghur region to put an end to Uyghur forced labor.
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