(Reuters) – Italy’s competitors authority (AGCM) mentioned on Wednesday it had began an investigation into luxurious vogue teams Armani and Dior over the alleged exploitation of employees of their provide chain.
Milan prosecutors ordered a number of Chinese language-owned corporations which might be primarily based in Italy and that produced luxurious items for Dior and Armani to be put underneath administration. The prosecutors had accused the businesses of systematically abusing their workers.
In a press release, AGCM mentioned its probe centered on some corporations of the Armani Group and a few corporations of the LVMH-controlled Dior Group, including that it had acted in response to the actions by the Milan prosecutors.
“The (Armani and Dior) companies may have made untrue ethical and social responsibility claims, in particular with regard to working conditions and compliance with legality at their suppliers,” the antitrust company mentioned.
They have been positioned underneath investigation “for possible unlawful conduct in the promotion and sale of articles and clothing accessories, in breach of the (Italian) Consumer Code,” it added.
Armani and LVMH didn’t instantly reply to requests for remark.