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Nike pays 1.5 mn dollars to settle factory conditions case
Washington, Sept 13: Sports equipment giant, Nike Inc., has agreed to pay 1.5 million dollars for workplace monitoring to settle a lawsuit alleging it lied about conditions in the low-cost Asian factories of its suppliers.
Washington, Sept 13: Sports equipment giant, Nike Inc., has agreed to pay 1.5 million dollars for workplace monitoring to settle a lawsuit alleging it lied about conditions in the low-cost Asian factories of its suppliers.
The case had sparked a free-speech controversy at the US Supreme Court.
Nike said yesterday in a statement that it would pay the money to the Washington-based fair Labor Association (FLA) over three years to fund worker rights programmes. In return, San Francisco-based consumer activist Marc Kasky would withdraw a 1998 suit that accused Nike of false advertising in a publicity campaign designed to refute claims that its products were made in sweatshop conditions in Indonesian, Chinese and Vietnamese suppliers' factories.
"Nike and Mr. Kasky agreed that this resolution benefits two key groups: factory workers and consumers worldwide," Patrick Coughlin, Kasky's lawyer, was quoted as saying in the statement. The money for the FLA would fund worker training and community development programs; develop local capacity to watchdog employers; and aid global efforts to gauge companies' social performance.
"This contribution will be beneficial towards our core mission of improving workers' lives," FLA executive director Auret Van Heerden said, adding it also would mean more and better information for consumers. Kasky had alleged that Nike made misleading statements in adverts and press releases to promote its image and influence consumer decisions, and should therefore be held liable for factual inaccuracies.
Bureau Report
Nike said yesterday in a statement that it would pay the money to the Washington-based fair Labor Association (FLA) over three years to fund worker rights programmes. In return, San Francisco-based consumer activist Marc Kasky would withdraw a 1998 suit that accused Nike of false advertising in a publicity campaign designed to refute claims that its products were made in sweatshop conditions in Indonesian, Chinese and Vietnamese suppliers' factories.
"Nike and Mr. Kasky agreed that this resolution benefits two key groups: factory workers and consumers worldwide," Patrick Coughlin, Kasky's lawyer, was quoted as saying in the statement. The money for the FLA would fund worker training and community development programs; develop local capacity to watchdog employers; and aid global efforts to gauge companies' social performance.
"This contribution will be beneficial towards our core mission of improving workers' lives," FLA executive director Auret Van Heerden said, adding it also would mean more and better information for consumers. Kasky had alleged that Nike made misleading statements in adverts and press releases to promote its image and influence consumer decisions, and should therefore be held liable for factual inaccuracies.
Bureau Report