Sainsbury's is embroiled in an embarrassing row, amid claims that its so-called ‘green’ shopping bag is anything but ethical.

Customers queued before dawn on Wednesday last week to snap up 20,000 carriers bearing the slogan "I'm not a plastic bag", made by designer Anya Hindmarch - whose own handbags retail for as much as £1,175.

The £5 tote has promoted by the supermarket as an environmentally friendly alternative to plastic and has become a fashion phenomenon, appearing on eBAY for hundreds of pounds within hours of sale.

But reports have emerged that the bag was made in China, a country known for appalling labour conditions, and the decision to use conventional, rather than Fairtrade, cotton, has been slammed by environmentalists.

Sainsbury's has denied any double standard, insisting it had never claimed the bag was Fairtrade and that the factory in China had been checked to ensure it did not exploit local workers.

A spokesman for the supermarket said: "We have never claimed the bag was Fairtrade or organic. The point of the bag is that it isn't plastic and can be reused.

"The bag was designed to raise awareness of the use of disposable plastic bags, a goal which it has achieved internationally."

The supermarket said the carrier was made in a factory that pays double the minimum wage for that province and complies with all aspects of Chinese labour law, as well as having operations reviewed by a human rights consultant. The retailer has also denied claims about the bag's carbon footprint, saying they were shipped in by sea and were carbon offset.

Campaigners remained sceptical, however. Sam Maher of Labour Behind the Label said: "If you market an environmentally ethical product, the onus is on you to see it is ethically produced and there is no way you can do that in China. I would challenge Sainsbury's to publish the name of the supplier and its audit report."

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