"Kmart denies sourcing any products from factories linked to forced labour in China ", 5 August 2025

An Australian-based Uyghur group has filed legal action in the Federal Court against Kmart, alleging the retail giant is sourcing some of its products from factories linked to forced labour camps in western China. 

Kmart has denied the allegations.

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The court action is seeking preliminary disclosure of documents relating to Kmart's supply chains that could be linked to labour in the Uyghur homeland, now known as the Xinjiang. 

[...] the case was testing whether Kmart was 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.

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The application alleges at least two garment suppliers are linked to the use of Uyghur forced labour in the Uyghur region. 

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In a statement, Kmart said it was disappointed AUTWA took this course of action and had invited the association to meet with them "several times" to understand their concerns.

"Kmart has been in correspondence with the applicant's lawyers for over 12 months and has provided extensive details of our Ethical Sourcing Program," the spokesperson said.

"For over 15 years, we have had in place an Ethical Sourcing Program, which helps us to identify and mitigate modern slavery risks, including the risk of forced labour, in our operations and supply chains.

"Suppliers in the Kmart Ethical Sourcing Program are regularly monitored through activities including our site visits, audit programs and investigations if we receive any reports or complaints of concern."

The spokesperson also said it was the first Australian retailer to publicly disclose its factory list on its website for transparency.

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