California Transparency in Supply Chains Act

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requires certain companies doing business in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains. The law applies to retail sellers and manufacturers with annual worldwide gross receipts over $100 million who do business in California.

The CTSCA requires covered companies to publicly disclose their efforts to address the risks of slavery and human trafficking in their supply chains. Specifically, companies must disclose on their websites:

Verification: Whether or not they verify the risks of slavery and human trafficking in their supply chains.

Auditing: Whether or not they conduct audits of suppliers to evaluate supplier compliance with company standards for slavery and human trafficking.

Certification: Whether or not they require direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.

Internal accountability: Whether or not they maintain internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking.

Training: Whether or not they provide training to employees and management on mitigating the risks of slavery and human trafficking in their supply chains.

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California Transparency in Supply Chains Act