Italy’s competition watchdog said it was looking into the luxury fashion brands Armani and Dior after reports that they utilized supplies from companies that underpaid and overworked their employees.
As part of the investigation, the AGCM watchdog and the Guardia di Finanza financial police conducted inspections on Tuesday at the headquarters of Giorgio Armani SpA, GA Operations SpA, and Christian Dior Italia Srl, the watchdog said on Wednesday.
According to the statement, an investigation into alleged unfair trade practices has begun.
“In some cases, the companies may have used supplies from workshops employing workers who would receive inadequate wages,”.
The employees are also accused of working “hours in excess of the legal limits and in inadequate health and safety conditions, in contrast to the boasted levels of production excellence,” it said.
The agency is also investigating potential consumer code violations in the way some Armani and Dior companies promote and sell clothing 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,” according to the report.
“Moreover, the companies emphasized 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.
“In addition, such workers would work hours in excess of the legal limits and in inadequate health and safety conditions, in contrast to the production excellence levels the companies pride themselves.”
