I have attempted to research this claim to no avail. I can't find a single written article to support this claim. It seems Knitpicks has addressed this issue on their website below. I find it interesting they invite anyone to visit their manufacturing partners. I am pretty sure if there was anything inappropriate going on it would be well documented other than a nasty rumor by word of month.
Our Manufacturing Partners
Knit Picks has very high standards for the International manufacturers we choose to work with. Executives from Knit Picks have visited each of our manufacturers' factories personally to ensure that their facilities and labor practices are in line with both Knit Picks' and our customers' expectations. Specifically, Knit Picks works only with manufacturers who:
- Institute management practices that respect the rights of all employees
- Provide a safe and healthy work place
- Promote the health and well-being of all employees
- Oppose the use of child labor
- Have an active role in the positive development of their local community
And if you’re ever interested in visiting our facilities in India, Peru, or Italy, e-mail Customer Service for more information, and we’ll connect you with a factory representative.