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California law requires transparency in supply

March 1st, 2012 / By: / Industry News

In an unprecedented effort to eradicate slavery and human trafficking from the supply chain used by large retailers and manufacturers doing business in California, the state passed the California Transparency in Supply Chains Act of 2010, which went into effect Jan. 1, 2012. Apparel and footwear retailers and manufacturers with annual gross receipts of more than $100 million will be affected by the new law, an estimated 3,200 companies worldwide. The five areas in which California wants transparency include: third-party supply chain verification, independent and unannounced supplier audits, supplier certification of legal compliance, internal accountability standards and staff training on forced labor and human trafficking. The United Nations Global Initiative to Fight Human Trafficking estimates that 2.5 million people are in forced labor (including sexual exploitation) at any given time as a result of human trafficking.

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