GAP CHILD LABOR CHARGES: Gap Inc. launched an investigation that children as young as 10 years old toiled in a sweatshop in India to produce children's goods for Gap, after allegations of those activities were published in British newspaper The Observer. "Under absolutely no circumstance is it acceptable for children to produce or work on garments," Dan Henkle, Gap's senior vice president of social responsibility, said in a prepared statement.

San Francisco-based Gap Inc. also said in the statement that a manufacturer it sources from in India "appears to have subcontracted out [production] to an unauthorized subcontractor, in direct violation of our agreement." Upon learning of the allegations on Oct. 22, Gap said, the company began taking steps to stop the subcontracted manufacturing and prevent the unauthorized products from being sold.

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