The Italian Competition Authority has launched investigations into the subsidiaries of the luxury fashion companies "Armani" and "Dior" for the suspected exploitation of employees in their supply chains. According to the authority, the companies, in some cases, sold products from countries where workers were paid less, subjected to long working hours and employed in violation of safety regulations.
"The business premises of the companies in Italy were checked yesterday", the authority said in a press release.
"In both cases, the companies may have issued false statements about their ethics and social responsibility, particularly regarding working conditions and compliance with the law by their suppliers.", the statement says.
"The investigation will examine whether the companies used illegal labor practices in the production and sale of their goods at high prices", said the authority.
The working conditions in the contracted companies are in complete contrast to the high production standards valued by "Armani" and "Dior" in their advertisements.
According to the authority, this practice violates Italian consumer protection law.
