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The Italian competition authority has imposed a fine of 3.5 million euros on Giorgio Armani because statements about ethical and social responsibility did not match actual working conditions.
Subcontractors
According to the Italian regulator, Giorgio Armani and its subsidiary GA Operations have actively presented themselves as examples in the field of sustainability and ethics over the past three years, both in public communications and on their corporate website “Armani Values”, where they emphasised the importance of good working conditions and employee safety as central brand values.
However, the competition authority judged that information to be insufficient and even misleading for consumers. A significant portion of the production of Armani leather bags and accessories is outsourced to external suppliers and subcontractors who did not adhere to the mandatory safety provisions. Workers had to work in unsafe and unhygienic conditions, and there were sometimes instances of undeclared work.
On appeal
The fact that GA Operations employees regularly conducted checks on these subcontractors indicates a clear awareness of the situation at the parent company, the regulator continues. An internal memo from Giorgio Armani last year states: “At best, the working environment is on the edge of acceptable, while in other places there are serious concerns about suitability and hygiene.”
In response to these findings, the Milan court advised – already in June 2024 – to urge Italian luxury brands to implement stricter controls on their suppliers. A broad approach must ensure that the entire supply chain complies with labour legislation. Giorgio Armani disagrees with the ruling: the fashion house “takes note of the decision with astonishment and disappointment” and is appealing against it. The company claims to act with the greatest possible openness and transparency.
