On January 1, 2012, retail sellers and manufacturers doing business in the state of California will be required to disclose their efforts to remove slavery and human trafficking from their direct supply chains for tangible goods offered for sale.

The purpose of the California Transparency in Supply Chain Act is to bring visibility to forced labor and human trafficking and also provide information to consumers who may make certain purchasing decisions based on a company's efforts, or lack thereof, when purchasing products. As recently as September 2009, the United States Department of Labor reported that 122 goods from 58 countries were believed to be produced by forced labor or child labor in violation of international standards.

The Act applies to any retail seller or manufacturer having at least $100 million in annual worldwide gross receipts.[1] If a company meets this requirement, it must post a conspicuous and easily understood link on its website to a disclosure statement that sets forth to what extent, if any, that the retail seller or manufacturer:...