Enter to open, tab to navigate, enter to select
California Transparency in Supply Chains Act: Attorney General Harris Issues Guidance to Companies
Practical Law Legal Update 5-608-7645 (Approx. 4 pages)
California Transparency in Supply Chains Act: Attorney General Harris Issues Guidance to Companies
by Practical Law Commercial
| Published on 14 Apr 2015 • USA (National/Federal) |
Attorney General Kamala D. Harris has issued a resource guide to help companies that do business in California comply with the disclosure requirements from the California Transparency in Supply Chains Act. The California Transparency in Supply Chains Act takes aim at human trafficking and slavery in product supply chains by requiring companies to disclose their efforts in combating these issues. The new guide provides businesses with recommendations to help them develop and refine their disclosures to consumers.
On April 13, 2015, Attorney General Kamala D. Harris issued a resource guide to assist companies that do business in California implement the disclosures required by the California Transparency in Supply Chains Act.
Enacted in 2010, the Supply Chains Act applies to retail sellers and manufacturers that do business in California and gross more than $100,000,000 worldwide. The Attorney General's guide, The California Transparency in Supply Chains Act: A Resource Guide, looks to assist these companies in addressing the Supply Chains Act's five required disclosure categories:
- Verification. A retail seller or manufacturer must disclose to what extent it engages in verification of product supply chains to evaluate and address risks of human trafficking and slavery.
- Audits. A retail seller or manufacturer must disclose to what extent it conducts audits of suppliers to evaluate supplier compliance with company standards for preventing trafficking and slavery in supply chains.
- Certification. A retail seller or manufacturer must disclose to what extent it requires direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
- Internal Accountability. A retail seller or manufacturer must disclose to what extent it maintains internal accountability standards and procedures for employees or contractors failing to meet company standards regarding the prevention of slavery and trafficking.
- Training. A retail seller or manufacturer must disclose to what extent it provides the company employees and management, who have direct responsibility for supply chain management, with training on human trafficking and slavery compliance issues, particularly with respect to mitigating risks within the supply chains or products.
The Supply Chains Act does not require businesses to create new disclosure measures. However, all compliant disclosures must be made available on the company's website and be accessible by a conspicuous link on its homepage. If a seller or manufacturer is subject to the law and does not have a website, it must issue a written response to a request for information within thirty days.
For more information on the California Transparency in Supply Chains Act, see Practice Note, ESG and the Supply Chain: California Legislation.
This guide reinforces the growing trend to identify human trafficking as a worldwide issue and highlights a law requiring companies to tackle the problem head on.