The California Transparency in Supply Chains Act of 2010 goes into effect on Jan. 1, 2012, requiring retail and manufacturing companies to disclose what efforts they’ve taken to eliminate slavery and human trafficking from their supply chains.

The Independent Bakers Association is calling on its larger members using cocoa, palm oils, acacia gum, chaar gund, char goond, meska, sugar and other foreign source inputs to be aware of this act and take note.

The law aims to “provide consumers with information regarding efforts to eradicate slavery and human trafficking from their supply chains” and to “educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains.”

Businesses subject to the act: (1) are retail sellers or manufacturers; (2) conduct business in California; and (3) have annual worldwide gross receipts that exceed $100,000,000. Such businesses are required to disclose its efforts to eradicate slavery and human trafficking from the company’s direct supply chain for tangible goods offered for sale.

The required disclosures must be made available on the company’s website with a conspicuous link to the disclosure placed on the company’s homepage. Companies that do not have websites must provide written copies of the disclosure within 30 days of receiving a written request for the disclosures from a consumer. The California Attorney General is empowered to enforce compliance with the act.

Because the act is a disclosure law, it does not impose any substantive regulation on supply chain activities. Nor does it impose any affirmative obligations on companies to perform diligence regarding the existence of slavery or human trafficking in their supply chains.
For more information, visit www.independentbaker.net.