California Transparency in Supply Chains Act (SB 657)

The California Transparency in Supply Chains Act requires large retail companies, like Destination Maternity Corporation (“DMC”), to inform our consumers of our efforts to eliminate slavery and human trafficking in our supply chain.

We hereby endeavor to conduct business with vendors who share our belief that:

(a) Employees of our vendors should be compensated fairly, as required by applicable law;
(b) Employees of our vendors should be provided a safe environment in which to work, as required by applicable law;
(c) Employees of our vendors should not be discriminated against in accordance with applicable law;
(d) Employees of our vendors have the right to freely associate and to collectively bargain; and
(e) Illegal child labor, forced labor, and coercion are each unacceptable business practices.


In furtherance of the foregoing, we currently have the following procedures in place:

(a) Each of our vendors are required to certify to us that that they will, among other things, comply with our Global Labor Practices (GLP), which addresses each of the items listed above. Our GLP is included in our vendor certification, which must be signed prior to an order being placed.

(b) DMC carefully considers selection of its vendors. In particular, DMC is risk averse to doing business with vendors in countries that do not have what we consider to be adequate human rights protections.

(c) Either an employee of DMC, or a third party directed by DMC, conducts periodic on-site audits on selected vendors to ensure material compliance with our GLP, including to evaluate risks of human trafficking and slavery. Audits are announced with short notice to vendors based on DMC determined risk level or quantity of goods ordered. In the event an audit determines that a vendor is potentially non-compliant with an aspect of the GLP, we may terminate our relationship with the vendor or provide recommended corrective measures that must be implemented within a certain defined period. During that period, the vendor must fully cooperate and allow DMC or its third party representative full access to the site, full access to the vendor’s records and full access to vendor’s employees. DMC retains the right to pull orders and cease business with a vendor based on a violation of our GLP.

(d) Beginning in December of 2011, our employees who are directly involved in ensuring compliance with our GLP and assessing risks such as slavery and human trafficking in our supply chain receive training through an outside program.

(e) For new vendors providing services to us on or after January 1, 2012, we have included in our vendor certification an affirmative statement that the material incorporated into products made for us comply with the applicable laws regarding slavery and human trafficking of the country or countries with which they do business.

(f) An employee engaging in activity which is prohibited by our GLP would be subject to discipline, up to, and including, termination.


By actively taking the above measures, DMC is doing its part to prevent slavery and human trafficking in our supply chain.