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California Transparency in Supply Chains Act (SB 657)

February 2012


A new California law, the California Transparency in Supply Chains Act of 2010 (SB 657) (the Act), went into effect on January 1, 2012. The Act affects certain retailers and manufacturers “doing business” in California with annual global gross receipts of US$100 million or more. It requires companies to disclose on their website their policies and efforts, if any, to combat the use of slave labor or trafficked humans in their supply chains. Importantly, the obligations under the Act extend to qualifying businesses whether based inside or outside of California.

Our publication examines why the Act was written, who must comply with the Act's disclosure requirements, what the disclosure requirements entail, where disclosure is to be posted, the ramifications of noncompliance and action items that a company may take.

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