Italian fashion is under investigation on charges of exploitation Thirteen brands were called upon to prove their innocence

Thirteen maisons and brands will have to prove to the Milan Prosecutor's Office that there is no exploitation in their Italian production facilities. Gucci, Prada, Versace, Saint Laurent, Givenchy, Dolce&Gabbana, Alexander McQueen, Off-White™, adidas, Ferragamo, Missoni and Coccinelle will have to share all the documents related to their internal procedures and the selection of suppliers, the inspections performed under labor and safety regulations, as well as supply contracts and internal reports from the past three years. The request responds to news that has emerged over the past two years regarding the conditions of workers in Italian factories, especially in the Prato textile district, which, as the prosecutor has pointed out, is the real subject under the spotlight in this matter.

Small subcontracted companies

The companies under the prosecutor’s scrutiny are small and medium-sized enterprises that produce accessories and garments on contract or subcontract for luxury brands. In the spring of 2024, for example, the Milan Court had opened an investigation into Alviero Martini srl, Giorgio Armani Operations srl and Manufactures Dior srl because they had been linked to a network of factories in which workers were subjected to exploitation, a scandal that deeply damaged the reputation of those brands – and of Made in Italy. The latest brand involved is the Tod's Group, currently under investigation for labor exploitation.

Why the external supply chain is a risk for Made in Italy

The external segments of the supply chain are difficult for the maisons to control, yet extremely useful for rapid production - a characteristic that, unfortunately, even luxury now seeks. They are, in a sense, the reason why last October the Minister of Made in Italy, Adolfo Urso, declared a state of emergency for the sector. Supply-chain illegalities are increasingly affecting brands, a situation that endangers Italian craftsmanship at a time when fast and ultra-fast fashion are accelerating in Europe, pushed by Trump’s tariffs in America.

Paolo Storari and the role of the brands

The investigation, already of strong media impact due to the involvement of some of the biggest names in international luxury, is finding fertile ground in public discussion also thanks to the figure of Paolo Storari, the prosecutor behind the luxury-supply-chain investigations of recent years. His approach, unusual because it assigns responsibility to the commissioning brands as well as to the factories they rely on, has even been dubbed the Storari method, already criticized by several jurists who believe that the judiciary should not have any moral duties.

What will happen next

So far, only the Tod's Group has been formally investigated, accused of exploitation and labor coercion of Chinese workers employed by external suppliers, while previously fashion companies were only under judicial administration - which did not interrupt production. The thirteen brands now addressed by the Milan Prosecutor's Office have no choice but to hand over the documents and wait for investigators to examine them, verifying whether these luxury names - which so often boast about their artisanal and Italian creations - have ensured that the entities within their production chain are safe, legal, and transparent.