Nicole Rice

AG releases new resource guide to inform compliance with the CA Transparency in Supply Chains Act

By Nicole Rice, Policy Director, Government Relations

Capitol Update, April 17, 2015

Since January 1, 2012, manufacturers have been required to provide consumers with better information about the working conditions behind the goods brought to market, pursuant to the California Transparency in Supply Chains Act that was approved in 2010. The Act specifically mandates manufacturers and large retailers with annual worldwide gross receipts over $100 million to disclose on their websites their efforts to stop and prevent human trafficking and slavery in their product supply chains according to five specific topic areas: verification, audits, certification, internal accountability, and training. 

Over the past three years, many manufacturers have taken steps to comply with the law and have customized their websites to make the information available to interested consumers. While the law prescribes the type of information to be disclosed, it does not stipulate the method of satisfying the requirement. Therefore, Attorney General Kamala Harris has released a Resource Guide to help covered businesses comply with the law. The Guide is not an enforceable regulation nor does it supplant the law. It is intended to provide suggested best practices, based on real world examples, to help guide companies on how to satisfy the requirements within the spirit of the law.

According to the Guide’s Executive Summary, “[t]he Resource Guide addresses each of the Act’s requirements and provides model disclosures based on actual company disclosures that fit with the language and spirit of the law. Of course, the model disclosures provided in this guide are merely examples. There is no formula for a model disclosure because one size does not necessarily fit all. The best disclosures are those that are specific to the company and explain the company’s efforts [even if there are none] in clear, concise language.”  

CMTA continues to encourage all covered manufactures to comply with the law and recommends utilization of the new Resource Guide to inform your company’s decisions on how best to make this information available.

Click here to review the Resource Guide.

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