China Labor Watch has submitted evidence to the U.S. Customs and Border Protection (CBP) regarding suspected forced labor at a factory manufacturing the Labubu toy. The organization also provided evidence to Germany’s Federal Office for Economic and Export Control (BAFA) under the Supply Chain Due Diligence Act (LkSG). Labubu is licensed by the designer toy company, Popmart.
The findings of our investigation reveal serious labor rights violations. Workers reported excessive working hours, with more than 100 hours of overtime per month and were not paid the legally required overtime pay. Workers stated that they were required to sign blank labor contracts, and evidence suggests that audit procedures may have been manipulated. Working and living conditions were reported to be harsh.
The investigation also identified risks affecting vulnerable groups. Reports indicate that underage workers were required to also work excessive hours, despite local provisions requiring restrictions on overtime. The factory also imposed a punitive fine system, and reportedly withheld dispatch workers’ wages. Some workers were denied payment if they did not complete a minimum employment period.
Forced labor risks should not be obscured through audit manipulation or shifted along supply chains. Popmart should address labor rights violations within its supply chain and ensure that workers are treated in accordance with applicable international labor standards and local labor laws.