The claims were made in a BBC Panorama investigation, with the outlet alleging Boohoo removed original labels on T-shirts and hoodies at its factory in Thurmaston Lane, Leicester, between January and October last year.

The mislabelling occurred at the Boohoo factory, allegedly affecting up to one in 250 garments in their global supply from January to October 2023.

The garments were shipped from South Asian countries to Boohoo’s Leicester factory where they underwent printing.

A Boohoo spokesperson tells Just Style the incorrect labels were an “isolated” incident which took place as “a result of human error” that impacted “less than 1 per cent of the Group’s global garments intake.”

The retailer assures that it is taking the right steps to ensure this does not happen again.

Despite the retailer’s figures, the BBC estimates hundreds of thousands of wrongly labelled garments.

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Chris Grayer, who previously held the position of head of supplier ethical compliance at the UK retailer Next, has contradicted Boohoo’s claims regarding the issue.

He told the BBC that the mistake was a “significant failure of inspection” and if such an error occurred at his previous workplace, all the affected garments would be recalled or stopped from being sold and all the labels would have to be changed to the correct label.

Philip Dunne MP, chair of the Environmental Audit Committee, said that the allegations of misleading labelling are very serious and should not be ignored.

Sylvia Rook, lead officer for fair trading at the Chartered Trading Standards Institute echoed Dunne’s statement and said incorrect labelling “could potentially mislead consumers.”

The news comes as Boohoo confirms it is weighing a decision to close and relocate its Leicester factory as it looks to ensure a “more efficient, productive and strengthened business”.

The Boohoo spokesperson assured Just Style the decision was linked to the role of its sites continuing “to evolve” and not related to the Panorama investigation.

The Thurmaston Lane factory, built in 2022, was described as “proof of its commitment to the city of Leicester and ethical British manufacturing.” It boasted the capacity to handle tens of thousands of garments, whilst supporting both Made-to-order (MTO) and printing.

The factory was caught in another controversy in November last year when a Panorama investigation claimed an undercover reporter working for the business found employees pressuring suppliers to reduce prices even after deals had been agreed and that Boohoo Group’s Leicester factory had been subcontracting orders to Morocco.

Boohoo pledged to overhaul its ethical practices in 2020 after a supply chain scandal and allegations over factory staff pay and working conditions.

Media reports circulated during July  2020 that one of its Leicester-based supplier factories was paying staff just £3.50 ($4.46) an hour to work in unsafe conditions and breach of UK coronavirus lockdowns.

Boohoo said at the time it was “shocked and appalled” by the allegations and is committed to “doing everything in our power to rebuild the reputation of the textile manufacturing industry in Leicester.”

Boohoo accepted the investigation’s recommendations and launched an Agenda for Change to pay suppliers fairly and realistically.