A bill that aims to expose the use of child labour and forced labour around the world passed the House of Commons on Wednesday.
The new law will require Canadian companies and government departments to scrutinize their supply chains and file public reports on their efforts to improve labour practices.
The intent is to ensure none of their products or components are made by children in sweatshops in other countries, or by people forced to work excessive hours.
Businesses that don't comply could face fines of up to $250,000 for failing to report, and the bill allows for the potential ban on importing goods found to be produced with forced labour.
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