Italy’s competition authority (AGCM) said on Wednesday it had started an investigation into luxury fashion groups Armani and Dior over the alleged exploitation of workers in their supply chain.
In June and April Milan prosecutors ordered several Chinese-owned firms that are based in Italy and that produced luxury goods for Dior and Armani to be put under administration. The prosecutors had accused the companies of systematically abusing their employees.
The antitrust regulator said that the two brands may have used supplies from laboratories which employed workers receiving “inadequate” wages. In addition, these workers sometimes had to work illegally long hours in inadequate health and safety conditions, which was “in contrast to the boasted levels of production excellence”
“The (Armani and Dior) companies may have made untrue ethical and social responsibility claims, in particular with regard to working conditions and compliance with legality at their suppliers,” the antitrust agency said.
In a statement, AGCM said its probe focused on some companies of the Armani Group and some companies of the LVMH-controlled Dior Group, adding that it had acted in response to the actions by the Milan prosecutors.
They were placed under investigation “for possible unlawful conduct in the promotion and sale of articles and clothing accessories, in breach of the (Italian) Consumer Code,” it added.
