Italy’s industry minister stated on Tuesday that a few illegal companies in the fashion supply chain have damaged the reputation of “Made in Italy,” and he is developing a certification program to address this in light of the most recent high-profile instance.
Last week, investigators found evidence of worker abuses in the supply chain of Loro Piana, a cashmere company owned by the French luxury group LVMH, which led to its placement under judicial management.
In Italy, the label became the seventh luxury brand to be subject to this kind of court supervision since the beginning of 2024.
During a meeting with fashion trade bodies, Minister Adolfo Urso emphasised that the illicit actions of a few must not be allowed to damage the reputation of the entire sector. He stressed that such misconduct unfairly penalizes many responsible and compliant companies, ultimately harming the “Made in Italy” brand, which stands as a global symbol of excellence and quality.
He added that in order to spare brands from being held accountable for the actions of their suppliers or subcontractors, the ministry is developing a measure to certify the sustainability and legality of businesses in the supply chain beforehand.
Similar claims of worker exploitation have previously led to the administration of Italian handbag company Alviero Martini and fashion brands Valentino, Dior, and Armani. According to the Court of Milan’s decision in the Loro Piana case, the company “culpably failed” to sufficiently monitor its suppliers in order to increase profits.
In that instance, the prosecution claimed that the rule-breaking by Italian fashion companies was a centralised and widespread manufacturing technique. According to consulting firm Bain, Italy is home to thousands of small producers who account for 50% to 55% of the creation of luxury products worldwide.
Following the discovery of widespread abuse by prosecutors, Italian legal and political authorities, fashion industry bodies, and trade unions signed an action plan in May to combat worker exploitation in the supply chain for clothing and accessories.
