'We can't control them': Clothing recyclers frustrated by criminals operating in donation bin industry

An organization that represents clothing recyclers across North America says they’re frustrated after a W5 investigation found a fake charity and some violent players connected to organized crime have been muscling in on the clothing donation bin industry, and is calling for governments to do more.

The Secondary Materials and Recycled Textiles Association, or SMART, has a code of conduct and encourages its members to behave ethically, but is limited in what it can do when others break its rules, said the group’s president, Brian London.

“The industry as a whole is aligned with these priorities of making sure that we maintain a good reputation and allow charities to benefit from textile recycling efforts,” London said.

“There are cases where people mislead the public, which is why we encourage there to be smart regulation that allows for all donation options while maintaining the transparency that we think is important,” he said.

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London was speaking after a W5 investigation found an organization operating donation bins claiming to be a charity had actually lost its charitable status years ago, and used trackers to demonstrate that some bins that promised to help local needy people were actually sending items to North Africa.

A donation bin allegedly being stolen in July 2016. A Toronto civil lawsuit between bin operators alleges these images capture one competitor stealing another competitor's bins.

Police reports and court records obtained by W5 listed ways some Toronto-area bins were part of a turf war between rival groups that descended into theft, arson, brawls and violence. Members of those rival gangs or their associates were listed on bin licences in Toronto, the investigation found.

London said recyclers in his industry go to great lengths to wring value from discarded clothes, first through resale of used clothing locally, the sale of used clothing to export, and the rending of fabrics to become rags, mattress stuffing and more.

Each pound that is reused in some way is a pound that doesn’t go into the trash, he said, adding that trends of fast fashion have made their job more daunting in recent years as more clothing is purchased and discarded.

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Bins themselves play an important role, because they can be spread out in areas where it may not be economical to have a brick-and-mortar store, he said. Many charities have a revenue-sharing agreement with private operators that can mean money raised can go to good works, he said.

SMART has a code of conduct that requires its members to behave ethically, but it recognizes its limitations, said Steve Rees, a SMART past president. He says he’s frustrated that they can’t do more about the actions of some non-members.

“We can’t control them, but we can help educate them, and hopefully get them going in the right direction,” he said. “I think the municipalities have to do a better job of making sure that these things aren’t just dropped on everybody’s parking lot and doing what they shouldn’t be doing, because that bin model is a necessary model,” he said.

A Kidney Foundation of Canada clothing donation bin. The charity raises about a million dollars a year from used clothing, helping fund their work supporting kidney patients. (February, 2024. W5 Jerry Vienneau)

A City of Toronto councillor has called for the city to revisit its bin licensing system, while the City of Markham has proactively removed around 200 bins in the last five years to keep unlicensed ones from taking donations meant for charities.

• Part 1: You donated clothing to needy Canadians. So how did it end up in Africa?
• Part 2: How a clothes donation bin company passed itself off as a charity, while donated items were put up for sale
• Part 3: Heists, arson and a baseball bat brawl: Police allege organized crime fought over clothing donation bins
• Part 4: Threats, slashed tires: How cities are trying to rein in clothing donation bin chaos
• Part 5: How to make sure your used clothes go to the right place – and not to organized crime

For tips on donation bins or any other story, please email Jon Woodward or call 416 859 8617