Consumer complaint demands fair working conditions
On
6 April 2010, on the initiative of the European Center for Constitutional and
Human Rights (ECCHR) and the Clean Clothes Campaign (CCC), the Hamburg Consumer
Protection Agency filed charges of unfair competition against the German
discount retailer Lidl. The complaint, filed at the Heilbronn district court,
demands that Lidl stop deceiving its customers about working conditions in its
Bangladeshi textile suppliers.
Lidl is a member of the Business Social Compliance Initiative (BSCI), an international retailers' initiative that aims to improve working conditions along the supply chain. The BSCI code of conduct follows the conventional labor rights upheld by the International Labor Organization (ILO). The code includes rules relating to maximum working hours, salaries, discrimination and freedom of trade unions.
When dealing with consumers Lidl refers to its membership in the BSCI. It suggests that the corporation is not only striving for improvements in working conditions in supplier companies, but also that only products made under acceptable conditions are available to customers. For socially-conscious consumers this suggestion can be the decisive factor in their decision whether or not to buy a product.
By contrast, a study commissioned by ECCHR and the CCC has shown that labor rights in Lidl's suppliers are being disregarded in various ways, despite the fact that those managing supplier firms have undertaken social training. It was found that excessive working hours, withheld wages, repression of trade union activity and discrimination against women were standard occurrences. Such activity violates ILO conventions, the standards of the BSCI code of conduct and Lidl's own voluntary commitments.
There is an obvious discrepancy between the self-image that Lidl seeks to promote - that it verifies labor and social standards in supplier firms - and the reality of the situation. Lidl's self-presentation is specifically designed to persuade socially-aware consumers to shop at Lidl, on the understanding that products comply with social standards. The Hamburg Consumer Protection agency considers this behavior to be unacceptable, and judges that it qualifies as deception with relation to the laws against unfair competition. ECCHR supports their position. The charges that have been brought assert that Lidl has violated laws against unfair competition.
Lidl is a member of the Business Social Compliance Initiative (BSCI), an international retailers' initiative that aims to improve working conditions along the supply chain. The BSCI code of conduct follows the conventional labor rights upheld by the International Labor Organization (ILO). The code includes rules relating to maximum working hours, salaries, discrimination and freedom of trade unions.
When dealing with consumers Lidl refers to its membership in the BSCI. It suggests that the corporation is not only striving for improvements in working conditions in supplier companies, but also that only products made under acceptable conditions are available to customers. For socially-conscious consumers this suggestion can be the decisive factor in their decision whether or not to buy a product.
By contrast, a study commissioned by ECCHR and the CCC has shown that labor rights in Lidl's suppliers are being disregarded in various ways, despite the fact that those managing supplier firms have undertaken social training. It was found that excessive working hours, withheld wages, repression of trade union activity and discrimination against women were standard occurrences. Such activity violates ILO conventions, the standards of the BSCI code of conduct and Lidl's own voluntary commitments.
There is an obvious discrepancy between the self-image that Lidl seeks to promote - that it verifies labor and social standards in supplier firms - and the reality of the situation. Lidl's self-presentation is specifically designed to persuade socially-aware consumers to shop at Lidl, on the understanding that products comply with social standards. The Hamburg Consumer Protection agency considers this behavior to be unacceptable, and judges that it qualifies as deception with relation to the laws against unfair competition. ECCHR supports their position. The charges that have been brought assert that Lidl has violated laws against unfair competition.