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ARTICLE · 22 MAY 2023

Investigating Indian Supply Chains Effectively Is Key To Comply With German Supply Chain Act

Germany joined the likes of Australia, Canada, France and Italy, at the start of 2023, it brought into effect the German Supply Chain Due Diligence Act ("LKSG" or "the Act")...

IndiaGovernment, Public Sector

Germany joined the likes of Australia, Canada, France and Italy, at the start of 2023, it brought into effect the German Supply Chain Due Diligence Act ("LKSG" or "the Act"), which looks at ensuring better social and working conditions for workers, and control environmental liability of businesses.

Four months on, we see the first complaint filed under the LkSG. The European Center for Constitutional and Human Rights ("ECCHR"), the National Garment Workers Federation ("NGWF"), and the African Women's Development and Communication Network ("FEMNET") recently filed a complaint under the LkSG against Amazon, IKEA and Tom Tailor for failure to comply under the new Act. They have claimed lack of safety checks of the companies' suppliers that amount to "a violation of corporate due diligence" under the Act. It is the first complaint to be issued under the Act, which could see firms face fines of up to 2% of their global turnover if they fail to identify and prevent

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