What happens if a business does not comply with the supply chain act Germany?

Companies that are legally required to adopt LkSG compliance with the law may face financial or trade limitations as a result of noncompliance. The supply chain act Germany presently states that the following consequences may occur:

  1. Fines of up to EUR 800,000, or up to 2% of the company’s annual global revenue.
  2. Administrative enforcement actions may result in a pecuniary penalty of up to EUR 50,000.
  3. Exclusion from securing governmental contracts in Germany for up to three years.

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