California Transparency in Supply Chains Act of 2010 The California Transparency in Supply Chains Act of 2010 (SB 657) mandates that certain companies engaged in manufacturing or selling products within California disclose their efforts to eliminate forced labor and human trafficking from their direct supply chains for the goods they sell.

Forced labor and human trafficking encompass various forms, including the exploitation of child labor. USAHair.com, HY Hair and Beauty Supply, and its affiliated entities operating in California, collectively referred to as "Hy Hair And Beauty Supply," adopt a strict policy against both forced labor and child labor in the production of all their merchandise. To reinforce our dedication to human rights, Hy Hair And Beauty Supply is a participant in the United Nations Global Compact, a coalition of businesses committed to upholding human rights.

Across all locations and through our team members, Hy Hair And Beauty Supply pledges to uphold the highest standards of responsible business conduct and continually aims to provide sustainable beauty solutions worldwide. Discover more about Hy Hair And Beauty Supply's commitment to transparency and traceability within the supply chain in our latest Environmental, Social, and Governance (ESG) report.

I. Certification To collaborate with Hy Hair And Beauty Supply, suppliers and their contractors in the U.S. and abroad are expected to respect human rights and comply with Hy Hair And Beauty Supply's Code of Conduct. This Code of Conduct demands that suppliers and their contractors supplying products to Hy Hair And Beauty Supply refrain from any labor practices that breach the laws and regulations of the production or assembly country, including engaging in unsanitary or unsafe labor conditions. Following U.S. Department of Labor regulations and the Fair Labor Standards Act, the Code of Conduct stipulates that no child, indentured, involuntary, or prison labor should be utilized in the manufacturing of products sold to Hy Hair And Beauty Supply.

The Code of Conduct is a fundamental aspect of the Hy Hair And Beauty Supply Standard Vendor Agreement, Purchase Orders, Import Letters of Credit, and Service and Consulting Agreements.

Additionally, Hy Hair And Beauty Supply publishes an annual Corporate Social Responsibility Report, which outlines our initiatives towards an ethical supply chain.

II. Verification and Audit Suppliers and their contractors are required to keep written documentation proving adherence to the Code of Conduct and must present these records to Hy Hair And Beauty Supply upon request. This might include a third-party audit report, potentially conducted without prior notice, showing compliance with the Code of Conduct, especially regarding child and forced labor restrictions.

III. Training Hy Hair And Beauty Supply's Supply Chain Department leaders undergo annual training on the Code of Conduct, which covers updates and discussions on child labor laws and their significance in product sourcing.

IV. Enforcement Employees found violating the Code of Conduct's provisions on forced and child labor will face disciplinary measures, up to and including termination. Hy Hair And Beauty Supply reserves the right to terminate its association with any supplier found to be employing child or forced labor in the production of goods sold (or intended to be sold) to Hy Hair And Beauty Supply. Such suppliers may also face damages for breaching their contract with Hy Hair And Beauty Supply.