California’s Transparency in Supply Chains Act

The California Transparency in Supply Chains Act (SB 657) is a law that requires certain companies to disclose their efforts to eliminate slavery and human trafficking from their supply chains. The law applies to companies that do business in California and have annual worldwide gross receipts of $100 million or more.

Under the Act, covered companies must disclose on their website their efforts to eradicate slavery and human trafficking from their direct supply chains for tangible goods offered for sale. This includes disclosing any verification activities they have conducted, any audits they have undergone, and any certification programs they participate in. It also requires companies to disclose whether they have a code of conduct in place that addresses slavery and human trafficking and whether they provide training to their employees on the issue.

The Act aims to increase transparency and accountability in supply chains, and to encourage companies to take steps to address human rights abuses in their operations and supply chains. It is an important tool for consumers and other stakeholders to better understand the practices of companies and to hold them accountable for ensuring that their supply chains are free from slavery and human trafficking.