Canada’s Corporate Ethics Authority Investigates Zara Canada over Alleged Ties to Forced Uyghur Labour in China

The Canadian official responsible for corporate ethics has begun an inquiry into claims that Zara Canada Inc. is collaborating with businesses that engage in forced labour in China. This investigation into the clothing company was triggered by accusations from 28 social advocacy groups. These groups alleged in June that Zara Canada has business ties with three Chinese firms known to either use or support Uyghur forced labour. Zara Canada, the official said, has rejected these accusations, stating that the complaint is unfounded as the supposed human rights violations are not a result of its business operations. The official further noted that Zara Canada refused mediation, maintaining that it has no business connection with any factory in the Xinjiang Uyghur Autonomous Region. Zara is the eighth company that the official has probed for its use of Uyghur forced labour in its supply chain, with previous investigations including businesses like Ralph Lauren Canada LP, Walmart Canada, Hugo Boss Canada Inc., Diesel Canada Inc., and mining firm Gobi Man. Further evaluation results will be revealed in the coming weeks.