International Women’s Day Spotlight: Hilda Kwoffie
March 3, 2025
Article written by Alia Hussain
Shein in the Spotlight: Parliamentary Scrutiny and Its Legal Implications
Fast fashion giant Shein has found itself under parliamentary scrutiny in various jurisdictions, raising significant legal and ethical questions. The move to summon Shein to parliament reflects growing concerns over labour practices, environmental impact, and corporate governance within the fast fashion industry. This development not only increases accountability demanded from multinational corporations but also has far-reaching implications for the legal field, particularly in areas of corporate law, labour law, and environmental regulation. This article raises discussion around these legal implications as well as the ethical considerations.
Background of the Controversy
Shein, known for its ultra-fast production cycles and low-cost fashion, has been a target of criticism for alleged labour rights violations, shifty supply chain practices, and unsustainable environmental practices. Recent investigative reports have highlighted alleged underpayment of workers, excessive working hours, and insufficient workplace safety
measures in factories linked to Shein. These reports have prompted calls for stricter oversight, resulting in the company being summoned to testify before parliamentary committees in countries such as the United States and the United Kingdom, as well as in the European Union.
The parliamentary inquiries into Shein focus on several critical legal issues:
Labour Law Compliance: Allegations of exploitative labour practices have sparked debates about the enforcement of labour laws across international supply chains. Questions are being raised about Shein’s compliance with local labour laws in countries where its suppliers operate and the adequacy of existing legal frameworks to hold multinational corporations accountable.
Supply Chain Transparency: Shein’s business model, heavily reliant on third-party suppliers, has drawn attention to the lack of transparency in its supply chain. Legislators are exploring the need for stricter disclosure requirements and the imposition of due diligence obligations to ensure compliance with human rights and labour standards.
Environmental Impact: Fast fashion’s environmental footprint is significant, with concerns over waste management, carbon emissions, and unsustainable use of resources. Shein’s practices have become a case study for how legal frameworks might address corporate environmental responsibility.
Corporate Accountability: The hearings have reignited discussions about corporate accountability in the globalised economy. Legal experts are analysing the role of corporate governance reforms, such as mandatory reporting on Environmental, Social, and Governance (ESG) metrics, in ensuring accountability.
Implications for the Legal Field
The scrutiny of Shein is likely to shape the legal landscape in several ways:
Strengthened Regulatory Frameworks: Legislators may push for more robust laws regulating multinational corporations. This could include mandatory human rights due diligence laws similar to those introduced in France and Germany, requiring companies to identify and mitigate risks in their supply chains.
Evolution of Corporate Governance: The hearings may accelerate the adoption of ESG- focused corporate governance practices. Companies could face greater legal obligations to disclose their impact on labour rights and the environment.
Cross-Border Legal Collaboration: The global nature of Shein’s operations highlights the need for international cooperation in enforcing labour and environmental laws. Legal practitioners may need to navigate complex jurisdictions and harmonise regulatory standards.
Litigation Risks: Companies like Shein may face increased litigation from consumers, advocacy groups, and even governments. Claims could range from breach of labour laws to greenwashing, forcing companies to prioritise compliance to mitigate legal risks.
Conclusion
Shein’s appearance before parliamentary committees marks a pivotal moment for corporate accountability in the fast fashion industry. It is clear that there is need for greater oversight and reform. The legal field stands at a crossroads, with the opportunity to shape more equitable and sustainable practices through strengthened regulations and innovative governance models. As public and legislative scrutiny grows, legal professionals will play a
critical role in guiding companies through the evolving landscape of corporate responsibility.
