Italian regulator fines luxury brand $4.06 mn for misleading claims

The companies made untruthful, unclear, and equivocal statements in their code of ethics and on their corporate websites, including Armani Values and Armani, where users were directed to content promoting the brand’s ethical and social commitments, AGCM said in a press release.

These claims were used as marketing tools to enhance the brand’s reputation in sustainability and influence consumer purchasing decisions.

However, investigators found a stark contrast between these public commitments and actual working conditions at suppliers and subcontractors producing the majority of Armani-branded leather bags and accessories.

Many subcontractors reportedly removed safety devices from machinery to boost output, jeopardising worker health and safety. Sanitary and hygiene conditions were poor, and some employees were found to be working wholly or partially off the books.

The AGCM noted that these issues were well known to the companies. During a Judicial Police inspection, a GA Operations quality control employee admitted to visiting one such subcontractor monthly for about six months.

Additionally, in an internal document of Giorgio Armani SpA dated 2024—prior to the initiation of judicial administration proceedings requested by the Public Prosecutor’s Office of Milan—it is even stated 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”.

Fibre2Fashion News Desk (SG)