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Italy’s Antitrust Watchdog Fines Armani €3.5M Over Labor Practices

By  |  August 3, 2025

Italy’s antitrust authority has imposed a €3.5 million ($4 million) penalty on fashion giant Giorgio Armani and one of its subsidiaries over what it described as deceptive business conduct tied to ethical marketing claims, according to Reuters.

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    The watchdog alleged that the Armani group promoted strong ethical and sustainability values in its branding, while failing to ensure those standards were upheld within its supply chain. Specifically, it said that Armani had outsourced the bulk of its leather goods production to third-party suppliers, some of which subcontracted to workshops where illegal labor practices and inadequate health and safety conditions were reported, per Reuters..

    Despite projecting a corporate image focused on social responsibility, the regulator stated that Armani’s reliance on subcontracted labor undercut those claims. It also criticized the company for using sustainability-focused messaging as a marketing tool without aligning its actual operations accordingly.

    The accusations follow a wider crackdown by Italian authorities on labor conditions in the luxury fashion sector. In 2023, prosecutors placed one of Armani’s units under judicial administration in response to similar concerns—a decision that was later reversed in February of this year.

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

    In a response issued Friday, the Giorgio Armani group rejected the findings and announced plans to challenge the fine in an Italian regional administrative court. The company expressed “disappointment and bitterness” with the ruling, maintaining that it has “always operated with the utmost fairness and transparency towards consumers, the market, and stakeholders,” according to a statement cited by Reuters..

    Armani is not alone in facing scrutiny. The antitrust authority previously launched an investigation into Dior, a label under French luxury conglomerate LVMH, over similar claims. That case was resolved in May after Dior agreed to certain measures deemed sufficient by regulators to avoid penalties.

    Earlier this year, other high-end fashion labels, including Loro Piana and a division of Valentino, also came under judicial oversight due to alleged worker mistreatment within their supply chains.

    Source: Reuters.