California Transparency in Supply Chains Act: Attorney General Releases New Compliance Guide

Fri May 1, 2015

In April, California’s Attorney General released a resource guide to provide businesses with recommendations to develop and refine their disclosure to consumers in order to prevent human trafficking and slavery in their product supply chains.

The California Transparency in Supply Chains Act (the Act) that took effect January 1, 2012, requires retail sellers and manufacturers that do business in the state and have worldwide gross receipts exceeding $100 million (US) to publicly disclose their efforts to eradicate slavery and human trafficking from their direct supply chains.  The mandated disclosures apply to five specific categories – verification, audits, certification, internal accountability, and training.

The California Franchise Tax Board estimated that 3,200 companies would be affected by the Act.  Indirectly, the Act also affects thousands of suppliers and vendors along the supply chains of these large retailers and manufacturers.  Tax returns from 2011 would be used to initially identify who needs to comply with the new law.

The guide addresses each of the Act’s requirements and provides examples of model disclosures based on actual company disclosures that fit with the language and spirit of the law.

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Founded in 1937, SPI: The Plastics Industry Trade Association promotes growth in the $427 billion U.S. plastics industry. Representing nearly one million American workers in the third largest U.S. manufacturing industry, SPI delivers legislative and regulatory advocacy, market research, industry promotion and the fostering of business relationships and zero waste strategies. SPI also owns and produces the international NPE trade show. All profits from NPE are reinvested into SPI’s industry services. Find SPI online at www.plasticsindustry.org and www.inthehopper.org.

"From resin suppliers and equipment makers to processors and brand owners, SPI is proud to represent all facets of the U.S. plastics industry," said William R. Carteaux, president and CEO, SPI. "Our most recent economic reports show that the plastics industry as a whole is resilient, and has come through the recession significantly better than other U.S. manufacturing sectors."

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