The global luxury sector was rocked by news today as Italian police, led by the Milan Prosecutor’s Office, significantly expanded their probe into alleged labor exploitation within the country’s high-end supply chain. Prosecutors issued formal requests for supply chain documents from 13 major fashion brands, including powerhouses like Prada, Versace, Dolce & Gabbana, Gucci, and Yves Saint Laurent.
The investigation focuses on subcontractors mostly Chinese-owned workshops suspected of employing migrant workers in sweatshop conditions. Allegations include forced excessive working hours, severe safety breaches, and illegally low wages, reportedly dropping to a shocking €2.75 per hour. Police discovered luxury goods and subcontracting papers linking the exploited workshops to the newly named brands.
It is important to note that the 13 brands are currently not under formal investigation. The request for documents marks the first step in assessing the adequacy of their corporate governance and supply chain audit systems to prevent such abuses. This action is designed to ensure compliance, though failure to cooperate could lead to more serious consequences, including temporary court administration.
The massive expansion of the probe highlights the systemic pressure within the “Made in Italy” label, where cost-cutting measures facilitate a lack of oversight. This high-stakes inquiry underscores Italy’s commitment to holding luxury giants accountable for the ethical standards of their entire production chain.
