Rome, July 17 (EFE).- Italy’s antitrust authority announced Wednesday that it had launched an investigation on alleged unfair commercial practices by luxury brands, Armani and Dior due to illegal conditions in the workshops that supply them.
The investigations by the Italian Competition Authority (AGCM) come after the Public Prosecutor’s Office of Milan placed several Armani and Dior companies under judicial administration upon detecting instances of exploitation of workers of their suppliers.
Some of the suppliers of the luxury brands employed workers who received «inadequate wages» in addition to working hours that exceeded the legal limits in inadequate health and safety conditions, AGCM said in a statement.
The regulator said that it had «opened investigation proceedings against some companies in Armani Group (Giorgio Armani SpA and GA Operations SpA), and separate investigation proceedings against some companies in Dior Group (Christian Dior Couture SA, Christian Dior Italia Srl and Manufactures Dior Srl) for possible unlawful conducts in the promotion and sale of clothes’ items and accessories, in violation of the provisions of the Consumer Code.»
The investigations seek to determine whether the companies «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 added.
According to the AGCM, Armani and Dior «emphasized craftsmanship and quality» but «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.»
«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,» it added.
On Tuesday, AGCM officials, with the support of the Special Antitrust Unit of the Italian Financial Police, carried out inspections at the premises of the companies, Giorgio Armani SpA and GA Operations SpA, as well as of Christian Dior Italia Srl.
In June, Manufactures Dior Srl, which handled the internal production of part of the French firm’s 2024 collection of handbags and accessories and subcontracted to other companies, was placed under judicial administration. EFE
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