Forever 21 is known for its trendy clothing at dirt-cheap prices. However, are any of their employees really making a living when a pair of jeans is a mere $10?

Do Won Chang and his wife founded the company in the early 80’s, with their market aimed at the fashion forward but “thin-walleted” range of people.

But what keeps the clothing at such inexpensive prices is quite controversial. The first being their cheap labour. After being in a lawsuit over the poor conditions of their sweatshop in Las Angeles, the company moved to Asian manufacturers for cheap labour, yet still 35% of manufacturers still work in L.A, being paid extremely low prices such as 12 cents per vest sewed. It is also known that they obtain their materials from child-labour companies as well, not following companies such as Gap and Levi’s who swore off child-labour based companies.

The company is also known to have been involved with more than 50 copyright lawsuits considering the designs of their clothing, and stealing the work of designers. 

Yet, when the company gets caught, a price is paid for their business “sins.” Many wonder if this is just the business strategy of the company, because in the end they pay up which results in being “cheaper than licensing in the first place.” Where does one draw the line to ethics?

Sources:

http://www.businessinsider.com/the-secret-behind-forever-21s-dirt-cheap-clothing-2012-2

http://www.slate.com/articles/technology/top_right/2011/07/do_won_chang_ceo_of_forever_21.html