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California Transparency in Supply Chain Act

On January 1, 2012, the California Transparency in Supply Chain Act will go into effect in California. This act requires retail sellers and manufacturers doing business in the state to disclose the efforts they are making to ensure their supply chains are free from slavery and human trafficking in effort to eradicate slavery and human trafficking from product supply chains.

Bare Escentuals is committed to being responsible in its global business practices and takes steps with its vendors and suppliers to ensure compliance with Bare Escentuals standards of conduct as set forth in the Vendor Compliance Manual and all applicable laws. Bare Escentuals has made the following efforts to ensure compliance by its partners.

1. Vendor Compliance Manual: Bare Escentuals requires all of its product suppliers to confirm in writing that they understand and will adhere to our Vendor Compliance Manual. The guidelines set forth in the Vendor Compliance Manual specifically require suppliers to certify that all goods are manufactured in compliance with the wage and hour, slavery and human trafficking laws of the country of manufacture and without the use of children or prison, indentured, exploited, bonded, forced or slave labor.

2. On-Site Visits: Bare Escentuals product sourcing teams regularly visit suppliers' factories to assess and inspect factory conditions and ensure that management is not in violation of slavery and human-trafficking laws.

3. Code of Conduct: Bare Escentuals requires its product suppliers to strictly adhere to the Shiseido Group Supplier Code of Conduct which also requires strict compliance with the laws of the country of manufacture and expressly prohibits the use of child and forced labor. Additionally, all Bare Escentuals employees are required to adhere to our Code of Business Conduct and Ethics.

4. Audits: Bare Escentuals is initiating annual self-audits for all of our suppliers to require them to assess their own performance on social compliance issues and report results back to us.

5. Non-compliance: Bare Escentuals will not do business with any supplier who will not agree to comply with our social accountability standards. Bare Escentuals will issue a warning to any supplier, employee or contractor who willfully or knowingly fails to comply with these standards and, if the vendor fails to take prompt corrective action, Bare Escentuals will terminate the business relationship.

6. Training: Bare Escentuals product sourcing teams in Asia are trained to identify possible indicators of human trafficking and slavery in the supply chain to ensure that no risk factors are present.

Bare Escentuals is dedicated to conducting its business with integrity and the highest standard of ethics and seeks the same level of integrity and ethical standards with its vendor and supplier partners. Bare Escentuals will continue to assess all risks and opportunities to ensure that its approach will prevent any injustice or violation of human rights within its supply chain.