Gap has reacted swiftly to allegations that one of its Indian suppliers used child labour to produce garments by donating US$200,000 (£97,435) to improve factory conditions.

The US fashion giant will tighten up procedures after it was revealed that children as young as 10 had produced some items for the retailer in conditions that were said to be “close to slavery”.

The prompt response to the allegations highlights the seriousness with which retailers regard allegations of child labour and unethical sourcing practices, as highlighted in Retail Week’s A Source For Good campaign. The campaign demonstrates the work retailers are doing to support the development of poorer countries.

Gap said it had taken action “decisively” following the revelations that were disclosed in The Observer last month.

An embroidered child’s garment, which has since been withdrawn, was being produced by a sub-contractor that had not been authorised, according to the retailer. It has suspended half its orders from the original contractor and put it on probation for six months.

The children involved will be paid until they reach working age and then offered jobs.

Gap employs 90 people worldwide to ensure compliance with its Code of Vendor Conduct. Last year, it stopped working with 23 factories because of “code violations”.

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