CA Supply Chain

CA Supply Chain

The California Transparency in Supply Chains Act (CA Supply Chain Act), officially known as the California Transparency in Supply Chains Act of 2010 (SB 657), is a law enacted by the state of California aimed at addressing human trafficking and forced labor within supply chains. The law requires certain large companies doing business in California to publicly disclose information regarding their efforts (if any) to ensure that their supply chains are free from slavery, human trafficking, and other forms of labor exploitation.

Key Features of the CA Supply Chain Act:

1. Applicability: The law applies to retail and manufacturing companies with annual worldwide gross receipts of over $100 million that conduct business in California.
2. Disclosure Requirements: Companies subject to the law must disclose on their websites the specific actions they are taking (or not taking) to:
3. Verify their supply chains for the risk of human trafficking and slavery.
4. Audit suppliers to evaluate supplier compliance with company standards.
5. Certify that materials incorporated into their products comply with the slavery and human trafficking laws of the countries in which they do business.
6. Maintain accountability standards for employees and contractors regarding human trafficking and slavery.
7. Provide training on human trafficking and slavery to company employees and management.
8. Purpose: The law aims to increase transparency and allow consumers to make informed purchasing decisions based on whether companies are taking adequate steps to combat human trafficking and slavery in their supply chains.
9. Enforcement: While the CA Supply Chain Act does not impose direct penalties for non-compliance, companies must provide the required disclosures. Failure to do so can lead to actions by the California Attorney General, and reputational damage can occur from public scrutiny.

In short, the California Supply Chain Act is designed to encourage companies to take responsibility for ensuring that their supply chains are free from exploitation and labor abuses while providing consumers with greater transparency about corporate practices.