USA Law and Practice Contributed by: Michael G. Congiu and Gillian Gilbert, Littler
are engaged in prohibited trafficking-relat - ed activities. It is important to note that the regulation does not clearly specify whether the due diligence obligation extends beyond first-tier suppliers, leaving some ambiguity in its scope. US Conflict Minerals Rule The US Conflict Minerals Rule was adopted by the Securities and Exchange Commission (SEC) in 2012 pursuant to Section 1502 of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act. The rule is designed to promote transparency and accountability in the sourc - ing of certain minerals that may finance armed conflict. The regulation applies to companies that: • file reports with the SEC under the Securities Exchange Act of 1934; and • use any of the following minerals – tantalum, tin, gold, or tungsten – if those minerals are necessary for the functionality or production of a product manufactured or contracted to be manufactured by the company. Covered companies are required to conduct due diligence on the source and chain of cus - tody of these minerals if they originate, or may originate, from the Democratic Republic of the Congo (DRC) or adjoining countries. Under Section 13 (p) of the Exchange Act, com - panies must include in their annual disclosure: • a description of the products manufactured or contracted to be manufactured that are not “DRC conflict free” ; • the facilities used to process the conflict minerals;
• the country of origin of the minerals; and • the efforts undertaken to determine the mine or location of origin. This information must be made publicly available on the company’s website, ensuring transpar - ency for investors, consumers, and other stake - holders. 2.2.5 Indigenous Rights Legislation The United States has expressed support for the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), but it does not consider the declaration legally binding or reflec - tive of current international law. At the federal level, there is no comprehensive legislation spe - cifically dedicated to Indigenous rights. However, it is important to recognise that feder - ally recognised tribes in the USA are sovereign nations. They possess the authority to govern their members and territories, including the pow - er to enact and enforce their own legal codes and regulations. This sovereignty grants tribes significant autonomy in areas such as labour standards, human rights protections, and busi - ness regulation. For businesses operating on tribal lands or engaging in partnerships with tribal govern - ments, this creates a complex legal environ - ment. Companies must navigate tribal legal frameworks, respect tribal sovereignty, and address potential overlaps with federal and state jurisdictions. Notably, tribal standards related to labour rights and human rights may differ from those established by state or federal authorities, requiring tailored compliance strategies.
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