A new California law called “The California Transparency in Supply Chains Act of 2010” will go into effect Jan. 1, 2012. This law affects any retailers and manufacturers “doing business” in California with annual global gross receipts of $100 million. The law requires companies to disclose on their website their policies and efforts to combat the use of slave labor or trafficked humans in their supply chains.

Companies are required to disclose and address the following five categories:

* Evaluate and address the risks of human trafficking and slavery in their product supply chains. These disclosures must state if companies are not using third parties to verify the risks in their supply chains.

* Require their direct suppliers to certify that the materials incorporated into company products comply with laws regarding slavery and human trafficking in the countries in which they are doing business.