Rip Curl officials said they were aware that the mountain-wear range was made in a North Korean factory but pointed the finger at one of its subcontractors.
"This was a case of a supplier diverting part of their production order to an unauthorised subcontractor, with the production done from an unauthorised factory, in an unauthorised country, without our knowledge or consent, in clear breach of our supplier terms and policies," Chief Financial officer Tony Roberts told SMH.
"We do not approve or authorise any production of Rip Curl products out of North Korea," Mr Roberts said, claiming that they didn't know about the 'issue' until after production was finished.
Some of Rip Curl's critics are not buying it.
Oxfam Australia's chief executive officer Dr Helen Szoke said being unaware of the situation is not a valid excise.
"Rip Curl has no excuse for being unaware of what is happening. Companies are responsible for human rights abuses within their businesses - not only morally but also within international human rights frameworks," Dr Szoke said.
- Daily Mail