In an industry where the glow of viability and social responsibility is often presented as an integral part of luxury, the case reminds us that behind the refined sewing can hide shadows.
Following complaints about misleading statements about working conditions to its subcontractors, the historic Italian house is now called upon to apologize for the dark aspects of the supply chain and to pay the price.
The fine on Giorgio Armani and the categories
The Italian Competition Authority announced the imposition of a fine of 3.5m euros on the Giorgio Armani group and one of its subsidiaries, accusing him of unfair commercial practices, Reuters reports.
According to the finding, the group presented “misleading statements of moral and social responsibility”, which are not in line with the actual working conditions in the cooperating production units.
The production of leather species and bags had been primarily entrusted to third parties, who in turn commissioned other subcontractors, and according to the Authority, illegal workers and dangerous conditions of safety and health were identified.
In particular, and according to the Fashion Network, the Supervisory Authority stated that while Armani promoted viability as part of its marketing strategy, these allegations did not reflect the conditions in parts of its extensive supply chain.
The Supervisory Authority stated that while Armani promoted viability as part of its marketing strategy, these claims did not reflect the conditions in parts of its extensive supply chain
The case came to light for the first time last year, when the Italian prosecutors set one of the Armani units under judicial management – a measure that was later lifted in February.
Armani’s reaction
The Giorgio Armani Group responded with strong dissatisfaction, describing the ruling “bitter and unfair”, and stressed that it would appeal to the Italian administrative court. In a statement he pointed out that “it works with complete transparency and honesty towards consumers, the market and all its partners, as its history proves.”
The case is reminiscent of similar investigations into other major players of luxury, such as Dior, who agreed in May to prevent sanctions, but also Valentino and Loro Piana, who were also confronted with judicial authorities regarding violations in the labor rights of their suppliers.
The dimension of the problem
The research is part of a more general wave of controls in the Italian luxury industry, as the pressure for substantially implementing the principles of viability and social responsibility are intensifying, and not just for communication announcements.
The Competition Committee emphasized that the use of the term “sustainable production” and “respect for moral work” as a marketing tool, when real conditions in factories do not confirm it, constitutes a misleading consumer.
The next step
The fine on Giorgio Armani paves the way for more transparency in the industry and stricter controls. The bet is whether consumers of luxury species will continue to trust the brands that declare social responsibility, as they prove to be not complying with the rules.
Time will show whether luxury can be combined with real moral and justice in its supply chains.
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