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The Italian Competition Authority (AGCM) has investigated allegations that Armani and Christian Dior exploited workers. This probe, reported by Reuters, follows claims that workers at subcontractors for these brands were forced to endure long hours in unsafe conditions for low wages—a stark contrast to the brands’ promoted values of artisan craftsmanship and superior production standards. AGCM, in collaboration with the financial police, conducted raids on the business premises of these companies in Italy.
The situation escalated when the Milan court placed Dior’s Italian bag manufacturer under judicial administration for a year. This decision came after it was found that four subcontractors employed illegal Chinese residents and operated without the required breaks, producing bags that cost only €53 to make but were sold for €2,600. Armani faced a similar ruling in April.
In response, the Armani Group stated that it would cooperate fully with the investigation and was confident the allegations would prove unfounded. “The companies involved are fully committed to (cooperating) with the authorities (but) believe that the allegations have no merit and are confident of a positive result following the investigation,” the company said.
Dior also pledged cooperation, noting it had already cut ties with suppliers found to engage in illegal practices and was enhancing scrutiny of other providers.
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