Dutch Child Labor Due Diligence Law

The Netherlands is contemplating mandatory due diligence to prevent the use of child labor in supply chains feeding the Dutch market. The law would require companies selling goods or services to Dutch consumers – with no exemptions for legal forms or size – to investigate their suppliers’ employment practices. If there’s a clear indication that goods and/or services came about with the use of child labor, a company would need to put in place an action plan to avoid the use of that labor in the future.

The law would also impose a reporting obligation – companies would need to file a statement that they have exercised an appropriate level of supply chain due diligence to prevent child labor. Those in scope would have six months from the law’s effective date to submit the required documentation. There would be significant administrative fines and penalties for companies found to have inadequate due diligence or lack of an action plan or a reporting statement.