On January 1, 2012, the California Transparency in Supply Chains Act of 2010 takes effect. The new law mandates that retailers and manufacturers 1) with global sales exceeding $100 million, and 2) that do business in California (broadly defined) to disclose on their websites the steps taken to prevent slavery and human trafficking in their supply chain.
Because the law is broadly drafted and somewhat vague, those businesses that may be subject to the Act’s requirements should consult with legal counsel to determine applicability. In addition, suppliers to covered retailers and manufactures that are asked to certify their operation should also evaluate their obligations and responsibilities under the law.
For more information on the Act, check out the law firm of Mitchell Silberberg & Knupp’s International Trade Alert on this topic.