Forever 21 — Ethics Grade F

Forever 21 receives an overall ethics grade of F (15/100) on CancelCo's corporate accountability database. Sector: Fashion & Apparel. Market cap: Mid Cap.

Category scores

• labor: 10
• privacy: 50
• consumer: 30
• environment: 25
• humanRights: 15

Documented incidents (3)

• Sweatshop Conditions in LA (high, 2016) — The U.S. Department of Labor found Forever 21 clothing being produced in Los Angeles factories where workers were paid as little as $4 an hour and denied overtime pay.
• Unpaid Supply Chain Debts (medium, 2019) — Following its bankruptcy filing, Forever 21 left numerous garment factories in developing countries unpaid for completed orders, causing severe economic distress for vulnerable workers.
• Ariana Grande Lawsuit (low, 2019) — Ariana Grande sued Forever 21 for $10 million for using a 'look-alike' model and her copyrighted imagery in social media ads after an endorsement deal fell through.

Documented good deeds

• Headquarters Solar Power — The company installed one of the largest private solar power systems at its Los Angeles headquarters to offset energy costs.

Ethical alternatives

• Everlane — Uses 'Radical Transparency' to disclose factory conditions and true cost breakdowns of items.