ESG News

First complaint since German Supply Chain Act came into force

May 3, 2023

Germany – The German Federal Office for Economic Affairs and Export Control (BAFA) is currently investigating the first complaint filed since the German Act on Corporate Due Diligence Obligations in Supply Chains came into force. The complaint is against Ikea and Amazon and was filed jointly by two German and one Bangladeshi organization. Both companies are accused of violating safety standards and labor laws in the manufacture of their products in factories in Bangladesh. If BAFA reaches the same conclusion, the companies could face fines of up to 800 million euros (Ikea) and ten billion euros (Amazon).

Source: Handelsblatt

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