The antitrust watchdog in Italy announced on Wednesday that it was looking into claims made by luxury fashion brands Armani and Dior that their suppliers overworked and underpaid their employees.
The headquarters of Giorgio Armani SpA, G.A. Operations SpA, and Christian Dior Italia Srl were inspected by the AGCM watchdog and the Guardia di Finanza financial police as part of the investigation, the watchdog stated.
The inquiry follows the placement of the Armani and Dior businesses under separate judicial administration earlier this year due to allegations of labour law infractions by subcontractors. A request for comment received no response from either entity.
The antitrust watchdog announced in a statement that it has launched an inquiry into the Armani and Dior group companies due to accusations of unfair business practices.
“In some cases the companies may have used supplies from workshops employing workers who would receive inadequate wages,” it said. The staff are also alleged to have worked “hours in excess of the legal limits and in inadequate health and safety conditions”, it said.
The watchdog is also looking into possible violations of the consumer code in the way the companies promoted and sold clothes and accessories.
