Shein Faces Legal Challenge Over Alleged Forced Labor Links in IPO Bid
Uyghur rights group seeks to block Shein's London Stock Exchange listing, citing supply chain concerns tied to forced labor allegations.
- Stop Uyghur Genocide, a human rights nonprofit, has initiated a legal campaign to challenge Shein's proposed IPO on the London Stock Exchange.
- The group alleges that Shein's supply chains are linked to cotton produced by Uyghur forced labor in China's Xinjiang region, a claim Shein denies.
- The Financial Conduct Authority (FCA) has been given a 14-day deadline to respond to the group's pre-action protocol letter, which could lead to a judicial review if Shein's listing is approved.
- Shein states it prohibits forced labor globally but does not explicitly ban the use of Chinese cotton outside markets regulated by laws such as the U.S. Uyghur Forced Labor Prevention Act.
- UK lawmakers and rights advocates have criticized Shein's transparency on its supply chains, with some warning that approving the IPO could undermine human rights commitments.