Supply Chain Transparency
Given the largely closeout nature of much of the Company’s merchandise, its price points, and the ever-changing nature and composition of the merchandise it purchases and offers for sale, the Company does not comprehensively verify product supply chains or audit supplier compliance. The Company does send its own employees to a number of the overseas factories from which it buys product for tours and announced inspections.
The Company’s vendor contracts contain the following requirement:
“It is Purchaser’s policy not to purchase products manufactured using exploitive or unfair labor practices, such as forced labor, abusive labor practices, or child labor. Neither will Purchaser buy merchandise made as a result of any practices that are illegal in the place at which the products being offered are manufactured. By signing or shipping under 99 Cents’ PO, Seller attests to the fact that after a diligent inquiry, Seller has ascertained that no product that is the subject of this Purchase Order has been manufactured using any such forced, involuntary, exploitive, or unfair labor practices.”
The Company holds accountable any supplier found to have falsely certified its compliance with the Company’s policy set forth above, and any such supplier will no longer be used by the Company as one of its vendors. The Company’s buyers are also expected to comply with this policy, and any employee violating this policy will be held accountable through discipline including and up to termination. The Company maintains these accountability measures and is developing a training program on these topics to employees and managers operating in these areas.