(Reuters) - Australian clothing retailer Cotton On Group on Tuesday said it is investigating a Chinese supplier after British supermarket operator Tesco PLC <TSCO.L> suspended ties with the same supplier due to fears of the use of forced prison labour.
Tesco launched an investigation into ties with Zhejiang Yunguang Printing after media reports of a customer finding a message inside a Christmas card produced by Zhejiang and bought from one of Tesco's stores saying the product had been packed by foreign prisoners. [nL8N28W053]
"On becoming aware of the issue the Cotton On Group has launched an investigation into the supplier," said Greer McCracken, communications general manager at Cotton On.
Cotton On said it takes a zero-tolerance approach to any form of modern slavery, including forced labour.
Tesco said the Christmas cards were produced at a Zhejiang Yunguang Printing factory, about 100 km (60 miles) from Shanghai Qingpu prison.
Zhejiang Yunguang Printing did not respond to a Reuters request for comment. China's foreign ministry on Monday dismissed accusations of forced labour at the Shanghai prison. [nL4N28X2T8]
ABC News on Monday reported that Zhejiang Yunguang Printing also lists U.S. firms Walt Disney Co <DIS.N> and Big Lots Inc <BIG.N> among its international partners.
Neither Disney nor Big Lots responded to Reuters requests for comment outside of regular business hours.
(Reporting by Shreya Mariam Job; Additional reporting by Rashmi Ashok; Editing by Edwina Gibbs and Christopher Cushing)
