Samsung faces deceptive advertising charges in France after activists target corporate pledge

Activist groups accuse Samsung factories of using underage labor. (Reuters)
Updated 03 July 2019

Samsung faces deceptive advertising charges in France after activists target corporate pledge

  • Samsung Electronics is the world’s largest maker of smartphones

PARIS: The French subsidiary of Samsung Electronics is facing charges of deceptive marketing over its corporate ethics pledges after local activists complained that the smartphone giant’s practices in its factories, including the use of underage labor, violated human rights, two NGOs said Wednesday.

The preliminary charges were lodged in April against the South Korean firm by a Paris investigating magistrate following a complaint by two French activist groups: Sherpa and ActionAid France — Peuples Solidaires.

The complaint directly to the investigating magistrate circumvents prosecutors, who declined to pursue similar complaints by activists.

“This is the first time in France that it was recognized that corporate ethics pledges may be considered marketing practices that are binding on a firm,” the activist groups said.

In their complaint filed in June 2018, a copy of which was viewed by AFP, the groups accused Samsung of not respecting the ethics pledges it makes on its website.

Samsung declares on its website that in addition to complying with local laws and regulations it is also committed to applying a strict global code of conduct and practicing ethical management.

“We respect the basic human rights of all people. Forced labor, wage exploitation and child slavery are not allowed under any circumstances,” Samsung said on its website.

The activists argued that as the corporate ethics pledge was available to French consumers, the nation’s justice system was competent to handle the criminal complaint.

Based on reports by non-governmental organizations that visited Samsung factories in China, South Korea and Vietnam, the activist groups alleged that the firm was employing children under the age of 16.

They also alleged that the firm practiced abusive working hours, that housing and labor conditions failed to meet basic conditions of human dignity, and put workers in danger.

Samsung was not immediately available to comment.


Oil recoups losses as OPEC, US Fed see robust economy

Updated 14 November 2019

Oil recoups losses as OPEC, US Fed see robust economy

  • US-China trade deal will help remove ‘dark cloud’ over oil, says Barkindo

LONDON: Oil prices reversed early losses on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it saw no signs of global recession and rival US shale oil production could grow by much less than expected in 2020.

Also supporting prices were comments by US Federal Reserve Chair Jerome Powell, who said the US economy would see a “sustained expansion” with the full impact of recent interest rate cuts still to be felt.

Brent crude futures stood roughly flat at around $62 per barrel by 1450 GMT, having fallen by over 1 percent earlier in the day. US West Texas Intermediate crude was at $56 per barrel, up 20 cents or 0.4 percent.

“The baseline outlook remains favorable,” Powell said.

OPEC Secretary-General Mohammad Barkindo said global economic fundamentals remained strong and that he was still confident that the US and China would reach a trade deal.

“It will almost remove that dark cloud that had engulfed the global economy,” Barkindo said, adding it was too early to discuss the output policy of OPEC’s December meeting.

HIGHLIGHT

  • US oil production likely to grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations.
  • The prospects for ‘US crude exports had turned bleak after shipping rates jumped last month.’

He also said some US companies were now saying US oil production would grow by just 0.3-0.4 million barrels per day next year — or less than half of previous expectations — reducing the risk of an oil glut next year.

US President Donald Trump said on Tuesday Washington and Beijing were close to finalizing a trade deal, but he fell short of providing a date or venue for the signing ceremony.

“The expectations of an inventory build in the US and uncertainty over the OPEC+ strategy on output cuts and US/China trade deal are weighing on oil prices,” said analysts at ING, including the head of commodity strategy Warren Patterson.

In the US, crude oil inventories were forecast to have risen for a third straight week last week, while refined products inventories likely declined, a preliminary Reuters poll showed on Tuesday.

ANZ analysts said the prospects for US crude exports had turned bleak after shipping rates jumped last month.