Investigation into Armani and Dior by AGCM

The Italian competition authority, Autorità Garante della Concorrenza e del Mercato (AGCM), initiated an investigation into the luxury fashion brands Armani and Dior. This inquiry focuses on allegations that these companies may have misled consumers about their labor practices and the management of their supply chains. Reports indicate that prosecutors uncovered workshops located on the outskirts of Milan, where predominantly illegal immigrant workers were reportedly producing goods. These products were then sold to Armani and Dior at prices significantly lower than their retail values. This situation raises serious questions about the ethical sourcing of materials and the treatment of workers within the fashion industry, particularly in high-end markets where brand reputation is paramount. The implications of this investigation are substantial, not only for the companies involved but also for the broader fashion industry. If the allegations are substantiated, it could lead to increased scrutiny of labor practices across the sector, prompting other brands to reassess their supply chains and labor policies. The potential for legal repercussions and damage to brand reputation could also influence consumer trust and purchasing decisions. As consumers become more aware of ethical issues related to labor practices, companies may face pressure to adopt more transparent and responsible sourcing strategies. This investigation serves as a critical reminder of the importance of ethical practices in maintaining brand integrity and consumer confidence in the luxury market.