Dutch Child Labor Due Diligence Act
Applicable to companies selling goods and services to Dutch end-users, including companies registered outside the Netherlands.
The Child Labor Due Diligence Law requires companies to investigate whether child labor contributed to any goods or services they are selling or supplying. Companies must issue a due diligence statement, and if they identify any issues, set out a plan of action.
Companies that fail to comply with the requirements face steep fines, while continued non-compliance can result in criminal sanctions. It’s one of the first criminal enforcement tools for a failure to exercise human rights due diligence.
In short, below are the key requirements of the law:
- Companies are expected to investigate and determine whether there is reasonable suspicion that child labor contributed to the goods or services they are selling or supplying.
- If such a reasonable suspicion exists companies are required to create and engage in a “plan of action” to address their finding.