Italian Watchdog Fines Giorgio Armani For Misleading Worker Rights Statements

The Italian Competition Authority announced a 3.5 million euro (USD 4 million) fine against Giorgio Armani for issuing ethical and social responsibility statements that it said did not match actual working conditions at some suppliers and subcontractors.

The regulator found that a significant portion of Armani’s leather bag and accessory production was outsourced to suppliers using subcontractors where safety devices were removed from machinery to increase output, creating health and safety risks. It also reported inadequate hygiene and sanitary conditions and instances of off-the-books employment. The watchdog concluded these practices conflicted with the company’s public claims. Giorgio Armani, in a statement, expressed disappointment with the decision.