On 28 February, the European Center for Constitutional and Human Rights (ECCHR) reported that it filed a new complaint with the Federal Office for Economic Affairs and Export Control (BAFA) under the German Supply Chain Due Diligence Act (LkSG) against German supermarket chain Edeka. The complaint alleges human rights violations and environmental pollution in Edeka’s palm oil supply chain linked to Guatemalan supplier NuturAceitas which is believed to be an Edeka supplier. The complaint is supported by consumer watchdog organisation, foodwatch. This is not the first complaint ECCHR has filed against the supermarket chain – in November 2023, ECCHR and partner organisations filed a complaint against Edeka and another large supermarket chain Rewe regarding human rights violations in their banana supply chains in Ecuador.
Case history
LkSG complaint under Edeka’s internal complaints mechanism (January 2024) – ECCHR filed a complaint against Edeka under the company’s internal complaints mechanism asking the company to publish its list of indirect suppliers for its palm oil products in Guatemala and to take measures to address the human rights violations it identified. According to ECCHR, Edeka did not adequately respond to this complaint.
Legal case under German Act against Unfair Competition (January 2024) – ECCHR filed a legal case against Edeka under the German Act against Unfair Competition before the Karlsruhe Regional Court. The case demanded that Edeka prevent the use of misleading advertising relying on the Round Table for Sustainable Palm Oil (RSPO) seal, which claims that Edeka products are made with sustainable palm oil. German courts have recently made significant rulings against companies for greenwashing claims. In March, German courts ruled against Adidas and Lufthansa for misleading carbon neutrality claims in cases brought by the NGO Deutsche Umwelthilfe.
Separate LkSG complaint regarding banana supply chain in Ecuador (November 2023) – ECCHR filed a complaint against Edeka and another large supermarket chain Rewe for failure to take effective and adequate steps to prevent human rights violations in their banana supply chains in Ecuador. Last October, ECCHR announced that BAFA now recognises ECCHR partner, the Ecuadorian trade association ASTAC as a party to the proceedings against Rewe and Edeka. This decision will allow ASTAC to review the relevant procedural documents and keep informed about BAFA’s progress on the investigation. This may have been a driver in ECCHR’s decision to file a further complaint against Edeka.
About the case
According to ECCHR, the complaint is based on identified human rights violations, primarily linked to Guatemalan supplier NaturAceitas, which ECCHR states that it suspects supplies palm oil to Edeka. The allegations include
- Land grabbing from indigenous communities for the production of palm oil
- Low wages which are insufficient to support living expenses
- Suppressing the formation of trade unions by workers
- Lack of clean drinking in neighbouring communities due to the use of pesticides on farms.
Following research conducted by ECCHR and its partners, RSPO suspended the certification of products from this supplier. BAFA will now decide whether to take further action against the companies. BAFA may make recommendations or issue administrative sanctions if it finds the companies have failed to take appropriate preventive and remedial measures.
Additional context
On 9 April, the new German government’s coalition agreement was published, which includes its intention to strike out the LkSG as part of efforts to streamline bureaucracy. The final agreement is pending a vote expected to take place on 28 and 29 April and the agreement is expected to be signed on 5 May.
Based on our interpretation, any serious human rights cases that are either brought or have already been brought to the German regulator of the LkSG will continue to be reviewed and investigated as per the mandate of BAFA under the law while the implementing law for the EU Corporate Sustainability Due Diligence Directive is prepared.