Armani, Dior probed over supplier labour issues
Italy’s competition watchdog said yesterday that it was investigating luxury fashion groups Armani and Dior over allegations they used suppliers that underpaid and overworked their staff.
As part of the probe, the AGCM watchdog and the Guardia di Finanza financial police on Tuesday carried out inspections at the headquarters of Giorgio Armani SpA and G.A. Operations SpA as well as Christian Dior Italia Srl, the watchdog said.
The investigation comes after units of Armani and Dior were separately placed under judicial administration earlier this year following concerns over labour law violations by subcontractors.
In a statement, the competition watchdog said it had opened an investigation into the Armani and Dior group companies for alleged unfair commercial practices.
“In some cases the companies may have used supplies from workshops employing workers who would receive inadequate wages,” it said.
The staff are also alleged to have worked “hours in excess of the legal limits and in inadequate health and safety conditions”.
The watchdog is also looking into possible violations of the consumer code in the way the companies promoted and sold clothes and accessories.
“In both cases, the companies may have issued untrue statements about their ethics and social responsibility, in particular with regard to working conditions and compliance with the law by their suppliers,” it said.
It noted that the companies – which sell handbags costing thousands of euros – “emphasised craftsmanship and quality”.
“However, in order to make certain articles and clothing accessories the companies allegedly used supplies from workshops and factories employing workers who would receive inadequate wages,” it added. (AFP)