**California Law (Cal. Civ. Code § 1714.43) Requires Disclosure by Large Retailers of Their Efforts Regarding Human Slavery and Trafficking in Their Global Supply Chains** . . .                                                                                                                                                                                                                                                                                                                                                          

By: Brent E. Johnson                                                                                                               

Starting in 2012 large retailers (sellers and manufacturers) who do business in California have been required to comply with the California Transparency in Supply Chains Act of 2010, which requires retailers doing business in California to make specific disclosures on its website about efforts it makes to “eradicate slavery and human trafficking from its direct supply chain.” (Cal. Civ. Code § 1714.43).  The Act applies to “retail seller” or “manufacturer” . . . “doing business in California” . . . that has annual worldwide “gross receipts” that exceed $100,000,000.  The Transparency Act requires, at a minimum, disclosure of what actions the company is taking, if any, in five areas: (1) Engaging in verification of product supply chains to evaluate and address risks of human trafficking and slavery, specifying if the verification was not conducted by a third party; (2) Conducting audits of suppliers to evaluate compliance with company standards for trafficking and slavery in supply chains, specifying if the verification was not an independent, unannounced audit; (3) Requiring 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; (4) Maintaining internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking; and (5) Providing company employees and management, who have direct responsibility for supply chain management, training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products.  The disclosures are to be posted on the company’s website with a “conspicuous and easily understood link” to the required information on the website’s homepage (and if the company does not have a website, consumers are to be provided the written disclosures within 30 days of receipt of a written request.  The Transparency Act itself does not have a private right of action provision – it is clear: “[t]he exclusive remedy for a violation of this section shall be an action brought by the Attorney General for injunctive relief” (Cal. Civ. Code § 1714.43(d)).