Sweatshops

The Issue:

In January 2007, U.S. Senator Byron Dorgan (D-ND) introduced the Decent Working Conditions and Fair Competition Act (S. 367). Congressmen Michael Michaud (D-ME) and Chris Smith (R-NJ) introduced similar legislation (H.R. 1910) in the House on April 18. The legislation would define trafficking in sweatshop goods as an unfair practice before the Federal Trade Commission. It would also create a private right of action for companies (including individual shareholders in those companies) to sue other companies because they are allegedly selling sweatshop made goods. Finally, it would grant new powers to the U.S. Government to investigate contractors to ensure the U.S. government is not purchasing goods made with sweatshop labor. Because of the bill’s wide scope and poorly defined provisions, it is unclear if the legislation will see much action. It will however be a vehicle to generate debate, as it did during a hearing before the Senate Commerce Committee in mid February 2007.

AAFA on the Issue:

AAFA supports efforts to eliminate goods produced under sweatshop conditions, but believes the S. 367 would fail to advance that goal.