
Last week, Italian police raided the offices of several luxury brands, such as Bulgari and Chanel, due to suspicions of using subcontractors to employ Chinese workers under exploitative conditions, according to a prosecutor.
Raided companies also include Brunello Cucinelli, Etro, Goyard Italia, Jacob Cohen Company, Moncler, and Stefano Ricci, as confirmed by Milan prosecutor Paolo Storari to AFP, following information from the business daily Il Sole 24 Ore.
A significant investigation by Milan prosecutors has revealed numerous cases of exploitative labor practices in the supply chains of prominent Italian fashion brands, including Prada, Givenchy, and Dolce & Gabbana.
The investigation targets the prevalent practice of fashion companies outsourcing production to suppliers, who then subcontract it further. As margins diminish and controls on working conditions remain weak, orders eventually reach companies employing Chinese workers in exploitative conditions.
Several brands, including Loro Piana, were temporarily placed under special management due to concerns about the working conditions at their suppliers.
The restrictions were lifted after the companies agreed to implement stricter control over their supply chains.
The Italian government has defended luxury brands. Industry Minister Adolfo Urso stated last year that the reputation of Italian companies was “under attack.”
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