Fast-fashion companies could soon to be treated in the same way as tobacco, gambling and other ‘damaging’ fast-moving consumer goods. The Environmental Audit Committee has called on five online-only fashion retailers, including London-listed Asos (ASC) and Boohoo (BOO) to give evidence at a hearing this month, as part of its ongoing inquiry into sustainability in the fashion industry.
An upcoming parliamentary hearing will also call on evidence collected by The Financial Times as part of its recent investigation into garment factories in Leicester, which the paper says is "a popular manufacturing hub for many fast-fashion brands". The FT found that part of the sector "ignored employment law, with workers paid as little as £3.50 an hour when the minimum wage for over-25s is £7.83". By way of response, the FT said several factory owners told it "the low prices demanded by many retailers” made it “impossible to improve standards".
Chair of the Environmental Audit Committee and MP Mary Creagh said the committee was alerted to issues in the fast-fashion sector following a meeting with industry experts on 30 October 2018, specifically "illegally low wages" and the "mountains of non-recycled waste" generated at this end of the market. Letters have now been sent to Asos and Boohoo, as well as private company Misguided and US behemoth Amazon (US:AMZN), urging these companies to provide written evidence that they are complying with employment law and ensuring minimal environmental damage environment from selling cheap clothing. Specific questions include "what is the average life-cycle of the garments you sell?" and "how do you currently ensure that all the garment workers producing the clothes you sell are paid at least the minimum wage?"
A spokesperson for Asos said the company was "looking forward to co-operating with the committee". Boohoo declined to comment beyond confirming its receipt of the letter.
