California Transparency in Supply Chains Act

By Simon Bushell and Clare Nida

The Modern Slavery Act 2015 comes into force next month. The UK is at the forefront of a global move to tackle human trafficking and prevent slavery in supply chains. In June the G7 leaders declared their commitment to the issue, and as supply chains grow in complexity and pressure on production costs increases, we anticipate other countries will follow with legislation to combat forced labour. The Act follows the 2012 California Transparency in Supply Chains Act which applies to large retailers and manufacturers.

The Act introduces a requirement for businesses to report on the steps they are taking to ensure their supply chain is free from slavery and trafficking. This statement is to be prominently displayed on the homepage of the company’s website. This obligation under the Act applies across all sectors, and to businesses supplying both goods and services with a turnover in excess of £36 million, so its application is very wide.