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Dior Commits €2 Million to Labor Initiatives in Italian Antitrust Settlement

By  |  May 21, 2025

Luxury fashion house Dior has agreed to a series of corrective actions to resolve an investigation by Italy’s competition watchdog into concerns about misleading claims related to labor practices in its supply chain, according to Reuters.

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    The Italian antitrust authority announced on Wednesday that the case against Dior and two of its affiliated units has been closed. While the probe raised questions about the brand’s portrayal of working conditions at its suppliers, the authority concluded the matter without finding any legal violations. Instead, it accepted Dior’s proposed commitments as a suitable resolution, per Reuters.

    Among the remedies, Dior pledged to allocate €2 million (approximately $2.3 million) over five years to support efforts combatting labor exploitation. The company also agreed to strengthen oversight of its suppliers and revise its public messaging on ethical and social responsibility to more accurately reflect working conditions.

    The probe was initiated after Milan prosecutors uncovered workshops employing underpaid, often undocumented immigrant laborers who manufactured leather goods sold under high-end labels such as Dior and Armani. These workers were reportedly producing luxury handbags at a fraction of their retail cost, prompting legal and regulatory scrutiny.

    Read more: Italy’s Competition Watchdog Probes Armani and Dior Over Worker Exploitation Claims

    The investigation sought to determine whether consumer trust had been breached due to a gap between the brands’ marketing around craftsmanship and ethical practices and the actual labor conditions found at their subcontracted facilities, Reuters reported.

    In a statement, Dior noted its collaboration with the authorities, saying it worked “to define a robust set of commitments that increase transparency and strengthen oversight throughout its supply chain.”

    Despite the resolution, Italian consumer group Codacons expressed dissatisfaction with the outcome, criticizing the financial commitments as insufficient and highlighting the absence of any fines.

    Previously, judicial authorities had imposed special administrative measures on the implicated Dior and Armani subsidiaries to monitor and reform their supply chain practices. These measures were lifted earlier this year.

    Source: Reuters