RE: Moose at it again19 Mar 2021 12:14
From Financial Times 2 March 2021 - Read in full will help.
Punishment for coming forward about a crime is one of the recurring themes in US law enforcement. It can play out as comedy, such as when drug dealers dial 911 to report the theft of their stash, and more often as tragedy, such as when immigrants seek police protection that results in their deportation.
It can also play out as farce.
Shares in Boohoo slipped on Tuesday 2 March 2021 following reports that the British clothing retailer could be blocked from importing goods in the US on allegations of using forced labour. What set the ball rolling was a complaint to the US Customs and Border Protection agency, CBP, from Liberty Shared, an anti-trafficking organisation. It cited the supply chain review Boohoo itself commissioned last year as part of a reputation rebuilding exercise.
Boohoo said it was “not aware” of any investigation and promised to work with any “competent authority” to prove its products and supply chain meet the required standards. The whole episode brings to mind another recurring theme of US law enforcement — that gun owners are much more likely to be shot with their own weapon than use it successfully in self defence.
Boohoo’s response listed recommendations already adopted from last year’s report, which criticised management’s failures of oversight and governance but found no evidence that the company itself had acted criminally. These findings have become a key part of the armoury the group deploys to counter negative publicity around working practices, which first caught the attention of consumers and institutional investors last summer having been ignored for at least two years.
Yet the risk of Boohoo being locked out of its fastest-growing market appears vanishingly small.
America has been taking a harder line on slave-produced goods since 2016, when Congress closed a loophole that allowed their import if demand exceeded domestic supply. One of the CBP’s first uses of its expanded remit was to seize Stevia powder, a natural sweetener, from London-listed ingredients maker PureCircle, then release the shipment seven months later after an independent audit supplied by the company showed no connection with Chinese labour camps. More recent actions have targeted the Xinjiang region in China, home to the oppressed Uighur Muslims.
Establishing origin is challenging when raw materials flit across borders and fabrication passes between subcontractors. Reading a report on the Leicester rag trade will be easier for investigators than tracking down the provenance of cobalt-powered electric car batteries and cotton used in football shirts.
But having belatedly faced up to its problems, Boohoo’s reparation efforts go far beyond those of most fashion retailers. If its promises are delivered, the failings detailed in last year’s report will be historic. US authorities ought to have something better to do than hoist a penitent company by its own