California Transparency in Supply Chains Act (CTSCA)

Jurisdiction

For products sold in California

Law Summary

This California law requires large manufacturers and retailers doing business in the state ($100m+ global gross receipts) to publicly disclose their efforts (if any) to eradicate slavery and human trafficking from their direct supply chains, covering areas like verification, audits, certification, accountability, and training.

Law Obligation

Companies must disclose the extent of their efforts in five areas: verification, audits, certification, internal accountability, and training. Specifically, in its supply chain disclosure, a company must: 

  • Confirm if the company conducts verification activities to assess and manage human trafficking risks in its product supply chain, and if so, whether it uses third-party verifiers 
  • Confirm if the company audits suppliers to ensure compliance with its trafficking and slavery standards, specifying if audits are independent and unannounced 
  • State if the company mandates direct suppliers to certify that materials comply with relevant slavery and human trafficking laws 
  • Disclose if the company has internal procedures to ensure employee and contractor compliance with slavery and trafficking standards 
  • Confirm if the company provides training on human trafficking and slavery to relevant supply chain management personnel 
  • For companies with websites, the required disclosure must be easily accessible from the homepage. Companies without websites must provide a written disclosure within 30 days of a consumer request, meeting the same criteria as the web-based disclosure.

Standards and/or certifications that may apply

  • Fair Labor Practices and Community Benefits logo
  • Worldwide Responsible Accredited Production (WRAP) logo
  • Better Cotton Initiative logo