Consumer decoration
Italy imposes millions of fine against Armani companies
Italy’s fashion industry is again criticized: Companies of the luxury brand Armani Warned with ethics – but investigators found exploitation in the supply chain.
Companies of the luxury group Armani are criticized for deception about production standards. The accusation: The companies advertised with social and ethical standards and responsible production – despite serious grievances in their supply chain. The Italian competition authority has therefore sentenced Giorgio Armani Spa and GA Operations Spa to a fine of 3.5 million euros.
These are responsible for the production of bags and leather accessories from the Armani brand. Large parts of the production were outsourced to subcontractors in Italy. In several workshops, work exploitation occurred: machines without protection devices, precarious hygienic conditions, undeclared work and a lack of safety standards.
Allegation: deception of environmentally conscious customers
Nevertheless, the companies publicly advertised with sustainability and social responsibility – for example on the “Armani Values” platform or in the group’s ethics code. The competition authority speaks of “untrue claims” and accuses the company that they have used them as a marketing tool- especially to address social and environmentally conscious customers.
According to the authority, companies were aware of the situation of the suppliers. An internal report from 2024 states that the work environment is “at best at the limit of the acceptable”, but in other cases “there would be considerable doubts about its appropriateness and health”. In addition, an employee is said to have stated that they were regularly in one of the affected institutions, which indicates possible knowledge of the situation.
Allegation: Luxury companies use precarious working conditions
The competitive authority’s decision is made in a larger investigation by the Milan public prosecutor, which relate to branches of several luxury companies such as Dior, Valentino or Loro Piana. The suspicion is that you deliberately use precarious working conditions to reduce production costs despite the high -priced brand name. The corporations and companies always rejected the allegations and emphasized that he had no knowledge of the situation of the suppliers.
dpa
Source: Stern
