Authorities from Italy’s legal and political spheres, alongside fashion industry entities and labour unions, have collectively signed an action plan to address labour exploitation within the clothing and accessories production network.
The nation hosts prominent fashion brands including Giorgio Armani, Dolce & Gabbana, Prada and Versace, which contribute to half of the global luxury fashion market output.
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The action plan, while not enforceable by law, has been initiated following investigations that revealed extensive malpractices, as reported by Reuters.
Reuters quoted Milan’s court system head Fabio Roia, speaking during a press event for the memorandum’s signingL “The goal is that the court will no longer have to intervene.”
The memorandum aims to establish a repository containing information on brands’ suppliers and their employees.
Companies within the supply chain are expected to submit data on their tax adherence, social security payments and compliance with employment regulations to the platform, with mandatory updates every six months.
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By GlobalDataUnder the terms of the accord reached on 26 May 2025, fashion companies are obliged to promote the new platform among their suppliers and encourage them to register their information.
The Lombardy regional administration, which encompasses Milan, will grant participating companies a six-month renewable certificate of transparency.
A preliminary version of this plan was put forward in June 2024 by a Milanese court after inquiries into allegations of labour abuses within subcontractors linked to prominent brands such as LVMH and Giorgio Armani.
Investigations uncovered workshops in the vicinity of Milan where immigrant workers, many undocumented, were found labouring under harsh conditions. These individuals reportedly lived on the premises, worked continuously through nights and holidays, and used hazardous equipment — all aimed at increasing production levels.
In response to these findings, a Milanese court designated a special commissioner to supervise an LVMH subsidiary responsible for manufacturing Dior handbags. A similar measure had already been enacted in April 2024 concerning a unit associated with Armani.
Earlier in 2025, a division of Valentino under judicial oversight for one year due to identified labour abuses within its supply chain.
Companies retain the option to engage suppliers and subcontractors who choose not to participate in data collection.
