A labour rights organisation claims it has found evidence of worker exploitation in a Chinese factory that makes the viral Labubu dolls.

China Labor Watch (CLW), a US-based non-governmental organisation, alleges that its investigation found that one of Pop Mart's suppliers made employees work excessive overtime shifts, sign blank or incomplete contracts, and did not provide them with paid leave.

The furry Labubu dolls have surged in popularity around the world in recent years and are best known for selling toys in blind boxes, which hide their content from buyers until they are opened.

Pop Mart told the BBC that it is investigating the claims. The Beijing-based toy retailer stated that it appreciates the insights from the review and will firmly require companies making its toys to correct their practices if the allegations are confirmed.

Pop Mart additionally mentioned that it conducts regular audits of its suppliers, including yearly independent third-party reviews by internationally recognized inspectors.

CLW reported that it had carried out an in-depth probe into Labubu-maker Shunjia Toys Co Ltd, located in Guangdong province. The BBC has been unable to contact Shunjia Toys Co Ltd for comment.

CLW researchers conducted 51 in-person interviews with the factory's employees to discuss matters of recruitment, contracts, and their working conditions. The factory is described as a core manufacturing facility of Pop Mart toys and employs over 4,500 workers.

According to CLW, significant labour issues were flagged at Shunjia Toys Co Ltd's factory in Xinfeng County, including allegations of illegal overtime, unclear contract practices, and lack of safety training and protections.

While no child labour was identified, the factory did employ 16-year-olds under conditions that resembled those for adults, neglecting special care required by Chinese law, as stated by CLW.

CLW is urging Pop Mart to take immediate action to tackle the issues within its supply chain and recommends compensating affected workers while ensuring compliance with Chinese labour laws and internationally recognized labour standards.

Facilities like Shunjia are known as original equipment manufacturers (OEM) and produce goods as per client-defined pricing and production schedules. Hence, conditions in OEM facilities are heavily influenced by brand sourcing practices.

The hugely popular Labubus, fictional elf-like characters with jagged teeth, have sparked long lines in shops globally. Celebrity endorsements from figures such as Kim Kardashian and Blackpink's Lisa have significantly boosted Pop Mart's presence in the toy retail sector.