Human rights regulations are essential for protecting vulnerable populations worldwide, shaping responsible supply chains, and promoting ethical business practices. As supply chains grow increasingly complex and span multiple regions, the risks of forced labor, modern slavery, and child exploitation continue to increase. To address these challenges, governments have enacted laws requiring businesses to identify, mitigate, and report human rights risks within their operations. These efforts reflect a growing global commitment to eliminating exploitative practices and ensuring fair, humane treatment across industries.
Regulations addressing human rights in the supply chain vary greatly, covering different focuses and industries, but many aim to eliminate exploitative practices. These laws are critical for ensuring ethical labor practices, protecting vulnerable populations, and upholding international fair and humane treatment standards. While newer regulations often include environmental and governance aspects, the examples below highlight key laws targeting slavery and forced labor, which remain a cornerstone of global human rights efforts.
The United States (U.S.) has implemented several key human rights laws to address exploitative practices such as forced labor and human trafficking. Below are some notable examples.
The Uyghur Forced Labor Prevention Act (UFLPA) is a U.S. regulation aimed at combating forced labor and human rights abuses, particularly in the Xinjiang Uyghur Autonomous Region (XUAR) of China. Enacted on December 23, 2021, the UFLPA targets the systemic oppression of Uyghurs and other ethnic minorities in the region by prohibiting the importation of goods made wholly or partially with forced labor, especially from the XUAR.
To comply, importers must provide clear and convincing evidence that their goods have no connection to forced labor. Failure to do so may result in goods being detained, excluded, or seized by U.S. Customs and Border Protection (CBP), the agency responsible for enforcing the regulation. The UFLPA aligns U.S. trade practices with ethical standards and human rights protections, ensuring that products entering the U.S. market are free from exploitation.
Explore our blog to learn more about UFLPA compliance and strategies to avoid enforcement risks.
California Senate Bill 657, the California Transparency in Supply Chains Act of 2010, is a landmark law addressing human rights abuses in global supply chains. It requires California-based companies with over $100 million in annual revenue worldwide to disclose efforts to combat slavery and human trafficking. The law emphasizes transparency, mandating public reporting on five key areas: supply chain verification, supplier audits, certifications of compliance with anti-slavery laws, internal accountability mechanisms, and employee training on trafficking risks.
The Tariff Act of 1930 serves as the legal foundation for U.S. customs operations, regulating import duties, enforcement, and protections against unfair trade practices to safeguard domestic industries and ensure compliance with trade regulations. The Harmonized Tariff Schedule of the United States (HTS) standardizes the classification of imported goods and their duties. Key provisions include Section 1304, mandating clear labeling of a product’s country of origin, and Section 1307, which prohibits the importation of goods made with convict, forced, or child labor.
Violations under Section 1307 can result in exclusion, seizure, and potential criminal investigation. The act also empowers customs officers under Section 1589a to enforce compliance and targets unfair practices such as dumping and subsidies. By balancing efficient trade facilitation with ethical enforcement, the Tariff Act of 1930 remains a cornerstone of U.S. trade policy.
The European Union (EU) has enacted several human rights laws to foster ethical practices and address forced labor within supply chains. Below are some key examples.
The European Union’s Forced Labor Regulation (FLR), Directive (EU) 2019/1937, was adopted in 2024 and establishes a framework to eliminate goods produced with forced labor from the EU market. It applies to all products, regardless of origin, and to all economic operators involved in their production, import, or distribution.
Competent authorities within EU Member States are responsible for enforcement, including investigating suspected forced labor, withdrawing affected goods, and rejecting non-compliant imports at EU borders. The FLR prioritizes protecting vulnerable groups, such as women, children, and migrants, who are disproportionately affected by forced labor.
Germany’s Supply Chain Due Diligence Act, also referred to as Lieferkettensorgfaltspflichtengesetz (LkSG), effective January 1, 2023, requires companies that have their central administration, principal place of business, administrative headquarters, statutory seat, or branch office in Germany, to uphold human rights and environmental standards across their operations and global supply chains. Initially applying to companies with 3,000 or more employees—lowering to 1,000 employees in 2024—the law mandates businesses to identify, prevent, and mitigate risks related to human rights violations and environmental harm.
Key obligations include implementing risk management systems, conducting regular risk analyses, establishing grievance mechanisms for affected parties, and publishing annual reports on due diligence efforts. Non-compliance can result in fines up to €8 million ($8,394,760) or 2% of global turnover for companies with revenues exceeding €400 million ($419,734,000), along with exclusion from public contracts.
Learn more about the German Supply Chain Due Diligence Act in our blog.
Enacted in 2017, France’s Corporate Duty of Vigilance Law (Loi de vigilance) requires large companies with over 5,000 employees and headquarters located in France or 10,000 globally to prevent human rights violations and environmental harm in their operations and supply chains. Companies must develop, implement, and publicly disclose vigilance plans that include risk assessments, preventive measures, monitoring systems, and grievance mechanisms for affected individuals or communities. Non-compliance can result in legal action by any party with a legitimate interest, with courts empowered to impose fines or mandate improvements to inadequate vigilance plans.
Beyond the U.S. and EU, countries like Norway, Canada, and Australia have also adopted significant human rights regulations, which are detailed below.
Canada’s Fighting Against Forced Labor and Child Labour in Supply Chains Act took effect on January 1, 2024. It enhances corporate accountability by requiring businesses and government institutions to address forced and child labor risks in their operations and supply chains. Aligned with the Forced Labour Convention (1930) and the Worst Forms of Child Labour Convention (1999), the law defines forced labor as work performed under threat or coercion, and child labor as work that is illegal, hazardous, or interferes with education.
The act mandates annual reports detailing policies, due diligence efforts, identified risks, remediation measures, employee training, and the effectiveness of actions taken. Designated officials are authorized to verify compliance through inspections and record reviews, with fines of up to $250,000 for non-compliance, including failure to report or provision of false information. Affected institutions must submit reports to the Minister of Public Safety by May 31 each year.
Norway’s Transparency Act, effective July 1, 2022, promotes corporate accountability by requiring large enterprises to safeguard human rights and ensure decent working conditions across their operations, supply chains, and business relationships. The law mandates companies to conduct due diligence to identify, prevent, and mitigate human rights and labor risks. Companies must publish annual reports detailing their due diligence efforts, identified risks, and actions taken to address them. Additionally, individuals can request information on how businesses manage these risks, with companies obligated to respond promptly.
Australia’s Modern Slavery Act 2018 applies to entities operating in Australia with annual consolidated revenues of at least AU$100 million ($62,390,504.70). These entities must report on efforts to identify and address modern slavery risks in their operations and supply chains. These annual statements must include details on the company’s structure, operations, identified risks, actions taken—such as due diligence and remediation efforts—and assessments of effectiveness.
To promote accountability, reports must be approved by the entity’s governing body, signed by a responsible member, and submitted to the Minister for Home Affairs within six months of the financial year-end. The statements are published on a central government repository, encouraging corporate responsibility through reputational incentives rather than financial penalties.
The global push to combat human rights violations in supply chains underscores the need for effective compliance solutions. Meeting the requirements of the regulations above demands the ability to track suppliers, collect data, and report findings efficiently. Source Intelligence offers a comprehensive Human Rights solution that simplifies compliance through industry-leading automated software and in-house regulatory expertise.
Our technology enables you to dive deep into supplier practices and policies in real-time, providing visibility into supply chain risks as data is collected. Seamlessly integrated with major PLM and ERP platforms, our solution streamlines data gathering and reporting for several major human rights regulations. Whether you choose to manage compliance internally with our software or rely on our expert-managed services, Source Intelligence is here to help you achieve compliance with ease.