The Italian competition authority has launched an investigation into luxury giants Giorgio Armani and Dior Italy, suspected of overlooking the working conditions of their subcontractors.
Searches were conducted on Tuesday with the support of Italy's special anti-trust unit and financial guard at the headquarters of Giorgio Armani and Dior Italia, according to competition authority AGCM.
“The companies have emphasised quality and craftsmanship. However, they are suspected of using workshops and factories with inadequately paid workers to produce some products and accessories,” the AGCM noted.
Furthermore, employees were allegedly working longer than the maximum legal hours, under inappropriate health and safety conditions, as opposed to the high standards the companies take pride in, according to the competition authority.
The AGCM is also examining possible violations of consumer codes in relation to the promotional and sales practices of some Armani and Dior group companies.
“In both instances, the companies may have sent out misleading statements regarding social and ethical responsibility, particularly concerning their suppliers’ working conditions and legislative compliance,” the competition authority added.
