A proposal that will require public companies to disclose whether their products contain “conflict minerals” from a war-torn African country will not apply to large retailers like and .
The rule (which is part of the 2010 Dodd-Frank financial reform law) was finalized by the Securities and Exchange Commission Wednesday, according to the Wall Street Journal. The rule will require companies that sell products under their own brand name to disclose when the products from the war-torn Democratic Republic of Congo.
Target and Walmart will both be exempt from the rule, thanks in part to their lobbying efforts.
At the crux of the exemption lies the fact that although these retailers have their own brands, they don’t necessarily manufacture the products themselves. Here's a bit more on that from the Huffington Post:
“It’s very important that a distinction be made between a retailer who is acting as a manufacturer and has control over what is in a product and the vast majority who do not,” Jonathan Gold, National Retail Federation vice president for supply chain and customs policy wrote in a statement. “While retailers abhor the violence in the Congo, compliance with these regulations could still be extremely difficult and there is considerable debate on whether filing reports with the SEC will make any difference.”
The Huffington Post story dives a bit deeper into the lobbying power of large retailers. Check out their story to see some successes and failures.
Do you shop at the Target or Walmart in Elk Grove? What do you think about the exemption?
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