The Italian Competition Authority has fined fashion giants Giorgio Armani and its unit GA Operations €3.5m ($4m) for engaging in deceptive commercial practices.
The sanction follows the authority's investigation into the companies' claims about their ethical and social responsibility, which it found to be inconsistent with the actual conditions at their suppliers and subcontractors where the majority of Armani-branded leather bags and accessories production was outsourced.
The companies were found to have made false statements from 22 April 2022 to 18 February 2025 regarding their commitment to ethical standards and social responsibility.
These claims were deemed unclear, unspecific, inaccurate and ambiguous by the authority, violating consumer protection laws under the Consumer Code.
The authority's investigation revealed that Giorgio Armani and its unit promoted their dedication to sustainability and social responsibility, particularly concerning worker safety, as a key aspect of their marketing strategy to align with increasing consumer expectations.
This approach was evident in the title of their corporate website, Armani Values, and in documents procured during inspections.
The companies outsourced a significant portion of the production of their leather bags and accessories to suppliers who subcontracted the work.
Investigations at several subcontractor sites revealed that safety devices had been removed from machinery to boost production, endangering workers' health and safety.
These sites were marred by poor sanitary conditions, and there were instances of workers being employed off the books or under informal arrangements.
The severity of the situation was underscored by an incident in which a GA Operations employee responsible for quality control admitted to regularly visiting one such subcontractor's facility during an inspection conducted by the Judicial Police.
This admission suggested company awareness of the substandard conditions faced by workers producing Armani-branded products.
An internal document from Giorgio Armani dated 2024, which surfaced before the commencement of judicial administration proceedings initiated by the Public Prosecutor's Office of Milan, acknowledged that “in the best of the situations observed, the working environment is at the limit of acceptability; in other cases, there are serious concerns regarding its adequacy and health standards”.
In June 2024, the Court of Justice in Milan suggested a nationwide initiative for luxury brands to enhance their oversight of suppliers. The aim is to guarantee compliance with labour laws throughout their supply chains.
