Primark said on Monday it has stopped buying clothes from three Indian suppliers who were accused of using child labour.
The cut-price clothing chain said the factories contracted finishing embroidery work to smaller firms in southern India which employed children.
It was alerted to the problem by a six-month BBC Panorama investigation.
The company also promised to employ a full-time officer in southern India to act as its ‘eyes and ears… continually investigating how and where garments are made’.
A spokesman added: ‘Most of our clothes are bought from the same factories as other fashion retailers and people producing them are paid exactly the same, whatever the label and whatever the price in the shop.
The company said it would set up a Primark Better Lives Foundation to give financial help to organisations devoted to improving the lives of young people.