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First complaints have been filed by NGO-s regarding German Due Diligence Law

The German Due Diligence Law hast steped into affect 1.1.2023 and now the first complaints have been filged against three retailers.

It will be interesting to see how and how fast the BAFA (Federal Office of Economics and Export Control) will react, as this is of high importance for the further understanding and impact of the GDDL.

A not so strong follow-up on these complaints and weak implications for the companies in question will also weaken the power of the law itself. A strong or very strong enforcement of sanctions or defining financial fines up to the possible limits wiould set an example for other concerned companies.

Should BAFA also see a violation of the LkSG, various sanction options are possible. BAFA can impose a financial penalty directly, if the regulatory offense is significant enough. The law provides for fines of up to two percent of global annual turnover. For one of the companies, this limit would be around 800 million euros, and for another, in extreme cases, even up to ten billion euros would be possible.