Cotopaxi has reimbursed workers at two fabric mills in Taiwan for the portion of predatory recruitment fees linked to the company’s production volumes at the facilities, according to the outdoor apparel and accessories brand’s 2025 Environmental, Social and Governance (ESG) report, published in April.
The company began remediation efforts after identifying indicators of forced labor at the mills in 2024. Cotopaxi said it worked with the American Apparel & Footwear Association (AAFA), the Fair Labor Association, Dignity in Work for All and Verité, an independent nonprofit focused on promoting fair labor practices, to address recruitment-fee violations and strengthen worker protections.
Beyond the recruitment-related abuses identified in Taiwan, Cotopaxi said its wider monitoring activities did not uncover any additional cases of forced labor.
Recruitment practices under scrutiny
Apparel companies in the international sourcing sector are becoming more concerned with predatory recruitment. Forced labor risks were the sixth most cited issue by respondents in the U.S. Fashion Industry Association’s 2026 Fashion Industry Benchmarking Study, up from 10th place last year.
This is especially relevant regarding sourcing and trade compliance because fashion brands are facing increased scrutiny around labor conditions in their supply chains.
Other apparel brands have been accused, and proven, to be of the same ilk. Ultra-fast fashion retailer Shein was grilled by U.S. senators in 2023 over whether its products contained forced labor. A year later, Shein disclosed two cases of child labor in its supply chain, leading the company to stop orders with the implicated suppliers and initiate investigations. 2024: A Skechers supplier faces forced labor charges
In 2024, after the Cotopaxi case in Taiwan, Transparentem, a nonprofit that investigates human rights, interviewed more than 90 migrant workers employed by textile suppliers in Taiwan.
Interviews suggested forced labor through predatory recruitment practices. In its 2024 Impact Report, Cotopaxi said it was one of more than 40 buyers linked to nine Tier 2 and Tier 3 suppliers in Taiwan where signs of labor abuses had been found.
The International Labor Organization has warned that abusive recruitment practices can lead to forced labor. Such practices may include: Charging workers recruitment fees; creating debt bondage through debt obligations; and misinforming workers about the nature or conditions of employment.
Cotopaxi expands supply-chain oversight
Cotopaxi said it maintains third-party audits across all of its Tier 1 and Tier 2 suppliers. The company also carries out numerous onsite visits as part of efforts to improve supply-chain transparency and monitoring.
The brand currently has five fabric suppliers in Taiwan, according to its annually updated supplier data.
Its response has extended beyond individual facilities. Cotopaxi said it is seeking to address the “root causes” of forced labor at a broader, systems level by working with industry associations and policymakers, while also using its own resources and grant-making programs.
The company has supported legislation including California’s Garment Worker Protection Act and New York’s Fashion Sustainability and Social Accountability Act, both of which seek to address human-rights violations affecting workers in the apparel industry.
Following the findings in Taiwan, Cotopaxi visited suppliers in the country in December 2024. The company also joined other businesses in seeking direct discussions with Taiwan’s government, the Taiwan Textile Federation and other government and foreign-policy officials to address labor abuses at the policy level.
In 2026, Cotopaxi said it worked with the AAFA and other brands to promote a “No Recruitment Fees” standard across Taiwan. The initiative calls for suppliers to assume responsibility for recruitment costs rather than passing those expenses on to workers.
A wider history of remediation
This isn’t the first time Cotopaxi has had to address labor risks related to recruitment in its supply chain, the Taiwan case is just the latest.
In 2022, a routine third party audit triggered concerns at a Tier 1 supplier in the Philippines. Predatory recruitment practices, limited access to restrooms and pre-employment medical appointments that were not covered by suppliers were found.
Cotopaxi then engaged a dedicated working group and two other brands that source from the same supplier. They hired an audit and remediation consultancy, a third party, to fix the violations.
In 2024 Cotopaxi reported that the remediation effort was successfully completed.
The company’s latest efforts in Taiwan are part of a wider push to move from identifying labor abuses to direct remediation, stronger recruitment standards and greater oversight of suppliers across its international apparel supply chain.
