🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Tesco suspends Chinese supplier after prisoner labor report

Published 2019-12-22, 05:59 a/m
© Reuters. FILE PHOTO: A company logo is pictured outside a Tesco  supermarket in Altrincham northern England.
TSCO
-
LNKD
-

LONDON (Reuters) - British supermarket giant Tesco (LON:TSCO) suspended a Chinese supplier of Christmas cards on Sunday after a press report said a customer found a message written inside a card saying it had been packed by foreign prisoners who were victims of forced labor.

"We abhor the use of prison labor and would never allow it in our supply chain," a Tesco spokesman said on Sunday.

"We were shocked by these allegations and immediately suspended the factory where these cards are produced and launched an investigation. We have also withdrawn these cards from sale whilst we investigate."

Tesco, Britain's biggest retailer, donates 300,000 pounds ($390,000) a year from the sale of the cards to the charities British Heart Foundation, Cancer Research UK and Diabetes UK.

The Sunday Times said the message inside the card read: "We are foreign prisoners in Shanghai Qingpu Prison China. Forced to work against our will. Please help us and notify human rights organization.

"Use the link to contact Mr Peter Humphrey."

Peter Humphrey is a British former journalist and corporate fraud investigator.

Humphrey and his American wife Yu Yingzeng were both sentenced in China in 2014 for illegally obtaining private records of Chinese citizens and selling the information to clients including drugmaker GlaxoSmithKline. The couple were deported from China in June 2015 after their jail terms were reduced.

The message inside the card was found by a 6-year-old girl, Florence Widdicombe, in London, the Sunday Times said. Her father contacted Humphrey via the LinkedIn (NYSE:LNKD) social network.

Writing in the Sunday Times, Humphrey said he did not know the identities or the nationalities of the prisoners who put the note into the card, but he "had no doubt they are Qingpu prisoners who knew me before my release in June 2015 from the suburban prison where I spent 23 months".

Tesco said it had a comprehensive auditing process in place.

"This supplier was independently audited as recently as last month and no evidence was found to suggest they had broken our rule banning the use of prison labor," the spokesman said. 

"If a supplier breaches these rules, we will immediately and permanently de-list them."

The cards were produced at the Zheijiang Yunguang Printing factory, which is about 100 km (60 miles) from Shanghai Qingpu prison, Tesco said.

The company, which prints cards and books for food and pharmaceutical companies, says on its website it supplies Tesco.

Two phone calls and one emailed request for comment to the company went unanswered after usual business hours on Sunday.

© Reuters. FILE PHOTO: A company logo is pictured outside a Tesco  supermarket in Altrincham northern England.

Humphrey and his wife said in their trial they had not thought they were doing anything illegal in their activities in China.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.