Overview

Many major companies fall within the scope of California's Transparency in Supply Chains Act. The Act, which takes effect January 1, 2012, requires companies to include a link on their homepage to a description of actions they have taken to combat human trafficking and slavery in their supply chains. A company that has taken no action must report having done nothing to combat human trafficking and slavery. The Act sets out five activity categories that companies must report, including supply chain verifications, audits and training. The Act does not require companies to engage in these activities; it merely requires companies to report whether or not they do, and to describe any efforts they have taken. Public interest groups are planning to give the Act additional bite by issuing "report cards" assessing companies' efforts to reduce human trafficking and slavery in their supply chains.