As forced labor and sex trafficking prosecutions steadily increase, corporations may be exposed to criminal and civil corporate liability.
Who must comply with the California Transparency in Supply Chains Act?
If the company answers "yes" to the following three questions, it is subject to the Act:
What disclosures are required under this new law?
The Act requires, at a minimum, disclosure of what actions the company is taking, if any, in five areas:
How must the disclosures be made?
The required disclosures are to be posted on the company's website with a "conspicuous and easily understood link" to the required information on the website's homepage. If the retail seller or manufacturer does not have a website, consumers are to be provided the written disclosures within 30 days of receipt of a written request.
When must the disclosures be posted?
The disclosures required by the Act must be posted starting on January 1, 2012.
Who is entitled to enforce the Act?
The exclusive remedy for a violation of the Act is an action brought by the Attorney General for injunctive relief. This section, however, is not intended to limit remedies available for a violation of any other state or federal law.
What else do you need to know?
The Franchise Tax Board will also be required to make available to the Attorney General a list of retail sellers and manufacturers that would be covered by the Act.
Click here to read the Oct. 4, 2011, Pillsbury Client Alert titled, "Retailers, Manufacturers Must Disclose Efforts to Combat Slavery, Human Trafficking as of Jan. 1."
Click here to read the text of the legislation, SB 657, including guidelines.
Click here to read the February 16, 2010, Pillsbury Client Alert titled, "CA Bill Would Require Manufacturers and Retailers to Combat Human Trafficking."