Italy’s competition authority (AGCM) announced on Wednesday that it has initiated an investigation into luxury fashion giants Armani and Dior concerning allegations of worker exploitation within their supply chains.
The inquiry follows actions by Milan prosecutors, who have placed several Chinese-owned firms operating in Italy under administration. These companies are accused of systematically mistreating their employees while producing luxury goods for both Dior and Armani.
AGCM’s investigation will scrutinize certain entities within the Armani Group and LVMH-controlled Dior Group. The agency noted that it acted in response to the prosecutors’ findings, emphasizing potential misrepresentations regarding ethical and social responsibility claims, particularly concerning working conditions and legal compliance among their suppliers.
The companies are being investigated for possible unlawful practices related to the promotion and sale of apparel and accessories, in violation of the Italian Consumer Code.
As of now, neither Armani nor LVMH has provided comments regarding the situation.
