SB 657 – California Attorney General Gearing up for Enforcement Actions

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Perhaps you have just received a letter from the California Attorney General seeking your voluntary participation in an on-line survey regarding your company’s compliance with the supply chain and anti-slavery and anti-human trafficking disclosures required by the California Transparency in Supply Chains Act?

Be careful.   Compliance with SB 657 was required by January 1, 2012 for certain companies that sell goods in California with annual worldwide gross receipts over $100 million.  In 2012, compliance consisted of make 5-6 disclosures on a company’s website – its business homepage – regarding its practices of auditing, verification, certification and training regarding their efforts to eradicate slavery and human trafficking from their supply chains.

However, the rules have shifted since 2012 and as a result the disclosures you posted in 2012 may be out of date, and deemed non-compliant.   The California Attorney General has just published a new guidance document that adds many more specific disclosure requirements than are contained in the SB 657 statute itself.  The AG’s Guide suggests companies add descriptions of verification protocols, frequencies of audits, methodologies used, audit statistics, content, duration and frequency of employee training, among other recommendations.

To that end, your SB 657 website disclosure may need significant revisions before replying to the on-line survey.