Italy’s antitrust authority has slapped Giorgio Armani and one of its subsidiaries with a €3.5 million fine for unfair commercial practices. The regulator found that the fashion house made public statements highlighting its ethical and social responsibility claims that were inconsistent with the actual conditions observed at its suppliers and subcontractors.
According to the watchdog, Armani outsourced much of its leather goods production to third parties, who further subcontracted to producers where illegal labor practices and unsafe conditions were discovered. While the group promotes sustainability as part of its brand image, the reality of its supply chain tells a different story. The issue had previously prompted judicial oversight of an Armani unit, a measure lifted earlier this year. The company has firmly denied the allegations, expressing “disappointment and bitterness” and vowing to appeal.
This comes amid a broader reckoning in luxury fashion over supply chain accountability. Dior, Loro Piana, and Valentino have also faced scrutiny in recent months over similar labor concerns.
