California "Supply Chains Act" Takes Effect January 1, 2012
On September 30, 2010, California Senate Bill 657, also known as the California Transparency in Supply Chains Act of 2010 (the "Supply Chain Act" or "Act"), was signed into law. The Supply Chain Act requires "retail sellers" and "manufacturers" doing business in California that conduct over $100,000,000 in worldwide sales to disclose what efforts they have taken to eliminate slavery and human trafficking from their supply chain. The Supply Chain Act becomes effective on January 1, 2012.
As explained in the bill, the law aims to "provide consumers with information regarding [the companies'] efforts to eradicate slavery and human trafficking from their supply chains" and to "educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains."
Many large "retail sellers" and "manufacturers" that are organized or domiciled outside of California are likely to be affected by the Act, even if the activities and operations that such "retail sellers" and "manufacturers" perform in California are relatively small.
Please see our recent client alert which provides a detailed summary of this law and compliance considerations.
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