Italian antitrust authority investigates Armani and Dior for alleged worker exploitation

(Reuters) – Italy’s competition authority (AGCM) said on Wednesday it had opened an investigation into fashion giants Armani and Dior over alleged exploitation of workers in their supply chain.

Milan prosecutors have ordered the administration of several Italian-based Chinese companies that made luxury goods for Dior and Armani, accusing the companies of systematically abusing workers.

The AGCM said in a statement that its investigation focused on some Armani Group companies and some Dior Group companies controlled by LVMH, adding that the actions were in response to actions by Milan prosecutors.

“The companies (Armani and Dior) may have made false statements regarding ethics and social responsibility, in particular with regard to working conditions and compliance with the law by their suppliers,” the antitrust authority said.

They were placed under investigation “for possible unlawful conduct in the promotion and sale of clothing items and accessories, in violation of the (Italian) Consumer Code,” it added.

Armani and LVMH did not immediately respond to requests for comment.

(Reporting by Alessandro Parodi, editing by Alvise Armellini and Miral Fahmy)