Was Your Labubu Made With Forced Labor?

Why It Matters

The findings expose potential violations of U.S. and EU forced‑labor laws, risking import bans and reputational damage for Pop Mart while highlighting systemic labor abuses in high‑growth consumer goods supply chains.

Key Takeaways

• China Labor Watch found 100+ overtime hours monthly at Shunjia Toys
• Workers earned $0.04 per toy under piece‑rate system
• Pop Mart’s Labubu sales exceeded $4 billion in 2025
• US and German regulators reviewing forced‑labor complaints
• Factory capacity claims far below actual 54.6 million units yearly

Pulse Analysis

The Labubu controversy underscores how heightened consumer demand can clash with labor standards. U.S. Customs and Border Protection, invoking Section 307 of the 1930 Tariff Act, and Germany’s BAFA, applying the Supply Chain Due Diligence Act, are scrutinizing whether the plush toys were produced with forced labor. While the investigation did not link the factory to Uyghur labor, the documented overtime, wage theft, and unsafe conditions meet the International Labour Organization’s definition of forced labor, raising the risk of import restrictions and legal penalties for Pop Mart.

Pop Mart’s blind‑box model has turned collectibles into a cultural phenomenon, propelling revenue to over $4 billion and selling more than 400 million units worldwide. This rapid growth pressured Shunjia Toys to expand output from a reported 12 million to an estimated 54.6 million units annually, prompting the factory to add workers under precarious contracts and piece‑rate pay. The resulting labor abuses illustrate a broader pattern where fast‑moving consumer goods prioritize volume over worker welfare, echoing concerns seen in the fast‑fashion sector.

For brands, the Labubu case serves as a cautionary tale about supply‑chain transparency. Companies must move beyond periodic audits to continuous, verifiable due‑diligence mechanisms that can detect hidden violations before products reach market. Failure to do so not only threatens costly import bans but also erodes consumer trust, especially as shoppers become more attuned to ethical sourcing. Strengthening oversight and aligning production practices with international labor standards will be essential for sustaining growth without compromising human rights.