Gap Law

This year, San Francisco–based Gap Inc. canceled contracts with 42 of its clothing manufacturers in China, stating that the companies breached the retailer’s labor standards. Gap recently announced the changes in its Social Responsibility Report, the product of a 2003 internal investigation into the labor practices at its worldwide factories. The terminations accounted for 9 percent of the 464 factories producing merchandise for Gap in China, the highest rate of any nation for Gap compliance violations. Poor records of workers’ ages, unclear wage statements and sub-par working environments were among the alleged violations.