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Calif. Transparency in Supply Chains Act of 2010

Calif. Transparency in Supply Chains Act of 2010

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On January 1, 2012, the California Transparency in Supply Chains Act of 2010 (SB 657) will go into effect in the State of California. This law was designed to increase the amount of information made available by manufacturers and retailers regarding their efforts (if any) to address the issue of slavery and human trafficking, thereby allowing consumers to make better, more informed choices regarding the products they buy and the companies they choose to support.

Newegg, Inc. (“Newegg”) is dedicated to conducting business in a lawful and ethical manner. It is our expectation that our suppliers do the same.

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We expect our suppliers to address the concerns of human trafficking and slavery. Specifically, we have terms and conditions in our purchasing agreements and purchase orders requiring our direct suppliers to comply with applicable laws regarding slavery and human trafficking. Our internal (non-third party) verification is performed with direct suppliers through their acceptance of our Vendor Code of Conduct. Newegg strives to form relationships with suppliers who have high internal standards requiring all employment practices comport with applicable laws including those that prohibit slavery and human trafficking.

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Newegg’s Vendor Code of Conduct explicitly entitles Newegg to conduct unannounced [and independent] audits or investigations at any time in response to a possible violation by our direct suppliers of company standards for trafficking and slavery in supply chains. Because Newegg strives to partner with direct suppliers who are governed by strict employment laws, at this time, we have not determined a need for additional verification or independent audit.

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By signing or accepting our purchasing contract or purchase order, each of Newegg’s direct suppliers certifies it conducts business pursuant to all applicable local and national laws and its failure to do so is considered a breach of the agreement.

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Every employee and contractor is required to abide by Newegg’s Code of Business Conduct. All new employees receive the Code of Business Conduct in their new hire information and sign an acknowledgement stating they have read it. Failure of employees to abide by Newegg’s Code of Business Conduct is taken seriously, and can result in corrective action up to and including termination of employment.

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Newegg provides training for associates and management who work with our supply chains on the issues of slavery and human trafficking.

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