LAW DETAILS
COUNTRY
United States of America (California)
CATEGORY
International Trade: Disclosure
LEGAL CODE TITLE
California Transparency in Supply Chains Act
LEGAL CODE REFERENCE
S.B. 657, § 2, subds. (a)-(c)
REVISION DATE
September, 2010
LEGAL JURISDICTION
State / International
FACILITY APPLICABILITY
Brands and Retailers
LAW REQUIREMENT TYPE
Disclosure
SUMMARY OR KEY PROVISION OF THE LAW
The California Transparency in Supply Chains Act, which was signed into law in October 2010 and went into effect in January 2012, requires certain companies to report on their specific actions to eradicate slavery and human trafficking in their supply chains. The law is aimed at mid-size and large retailers and manufacturing companies with worldwide annual revenues of $100 million or more. Its chief goal is to ensure companies provide consumers with information that enables them to understand which ones manage their supply chains responsibly. It is estimated that the reporting requirement will impact about 3,200 companies headquartered in California or doing business in the state.
Specifically, the law requires a company to disclose on its website its initiatives to eradicate slavery and human trafficking from its direct supply chain for the goods offered for sale. A company must disclose to what extent it: (1) engages in verification of product supply chains to evaluate and address risks of human trafficking and slavery; (2) conducts audits of suppliers; (3) requires direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the countries in which they are doing business; (4) maintains accountability standards and procedures for employees or contractors that fail to meet company standards regarding slavery and human trafficking; and (5) provides employees and management training on slavery and human trafficking.
See also The California Transparency in Supply Chains Act: A Resource Guide https://oag.ca.gov/sites/all/files/agweb/pdfs/sb657/resource-guide.pdf
See also The California Transparency in Supply Chains Act: A Resource Guide https://oag.ca.gov/sites/all/files/agweb/pdfs/sb657/resource-guide.pdf
LEGAL CONSEQUENCES FOR NON-COMPLIANCE
There no are stated penalties for noncompliance.
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RECORD ID
Mosaic42PB9696
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