Armani and Dior Under Investigation: Allegations of Worker Exploitation and Unfair Practice
Italy’s Competition Authority has launched an investigation into companies under the luxury fashion groups Giorgio Armani SpA and LVMH’s Christian Dior for alleged unfair commercial practices. The investigation alleges that these brands may have used suppliers employing workers with inadequate wages, illegal long hours, and unsafe working conditions, contrary to their claimed high standards of production excellence.
Recent actions by Italian authorities have targeted unlawful business practices in the fashion industry. In June, a Milan court placed a Dior unit under judicial control for alleged labor violations, and in April, Armani's manufacturing unit faced similar control for worker exploitation.
This Tuesday, financial police and antitrust officials searched the headquarters of Giorgio Armani SpA, G.A. Operations SpA, and Christian Dior Italia. Armani Group has acknowledged the investigation, committed to cooperating with authorities, and expressed confidence in a positive outcome. Dior has yet to comment.
The core of the investigation is whether Armani and Dior misled consumers about their ethical production processes. The brands are accused of making false claims about their ethics and social responsibility, particularly labor conditions and legal compliance by suppliers.
Violations of Italy’s Consumer Code could lead to fines of up to €10 million ($10.9 million).
This probe raises significant concerns about the ethical standards of luxury fashion brands, challenging the perception that high prices and European suppliers ensure ethical production.
