Thirteen major luxury brands — including Gucci, Versace and Yves Saint Laurent — are under investigation in Italy over allegations that their subcontractors exploited Chinese workers, according to a request issued on Thursday by the Milan public prosecutor’s office.
In a formal request for information seen by AFP, a Milan prosecutor stated that bags, wallets and garments from these brands were discovered during inspections of Italian workshops that employed “Chinese labour in severely exploitative conditions”, according to the document.
The latest proceedings involve brands from the French group Kering — Gucci, Yves Saint Laurent and Alexander McQueen — as well as Givenchy (part of LVMH), Prada and its newly acquired Versace. Also named are Ferragamo, Pinko, Dolce & Gabbana, Missoni, Off-White, leather goods maker Coccinelle, and the sportswear giant Adidas.
Prosecutors are asking the companies, all of which are presumed innocent, to swiftly submit documentation relating to their supply chains, including internal audit reports.
Other high-profile labels have already come under scrutiny in similar cases brought by the Italian judiciary. These include Dior, LVMH’s second-largest brand, along with leather goods manufacturers Tod’s and Alviero Martini, an Armani subsidiary, and cashmere specialist Loro Piana.
Investigations by the Milan prosecutor’s office have revealed poverty pay and reports of workers sleeping inside workshops to produce items that retail for thousands of euros, highlighting what authorities describe as a profound lack of oversight across fashion supply chains.
Under Italian law, companies may be held responsible for violations committed by authorised suppliers. Fashion labour advocates have long warned of such abuses within the sector.
The Italian government has moved to defend the country’s luxury houses, with the Minister for Industry and “Made in Italy”, Adolfo Urso, stating that their reputation was “under attack”, according to his remarks.
Tod’s, which has denied any wrongdoing, was given an 11-week period by a Milan judge on Wednesday to strengthen its supplier monitoring systems.
