Costco Wholesale Corporation Is An Object For A Variety Of Government Regulations

870 Words Oct 21st, 2016 4 Pages
Costco Wholesale Corporation is an object for a variety of government regulations that are impacting the company’s business activities. As for a retail business, the recent increase of the regulation requires Costco Wholesale Corp. to follow them in order to avoid fines or restrictions. One of the recent laws, Trade Facilitation and Trade Enforcement Act signed in February 2016, puts a strict regulation on the import of goods in the U.S. that are produced with the help of the forced labor thus eliminating the hole in the old Tariff Act. Previously, it was possible to import such goods if domestic production was not able to fully cover the demand. Also, the act requires all the corporations to conduct annual reports that provide the information about the company’s efforts to address the human rights risks in their supply chain.
Another recent government act that regulates the corporations is the Clean Air Act, which was responsible for several rather large penalties and Costco Wholesale Corp. was no exception ("Costco Wholesale Corporation Clean Air Act Settlement | Enforcement | US EPA", 2014). The corporation was violating the Act requirements that regulated the proper conduction of the leak detection monitoring and recording. The company had to pay a $335,000 civil penalty due to the fact that it was violating the regulation in several regions that include Nevada, Arizona, California, and its Pacific Southwest region facilities ("Costco Wholesale Corporation Clean Air Act…

Related Documents