Fashion Under Judicial Scrutiny

Inspections Launched at 13 Major Italian Companies

The Milan Public Prosecutor’s Office has launched inspections at 13 leading Italian fashion companies to verify
the regularity of their production supply chains, following investigations into labor exploitation and irregular employment practices.

The checks could lead to judicial administration measures or charges of labor exploitation,
sending a clear message to the industry: more oversight and greater transparency.

Fashion and Legality: When the Supply Chain Comes Under Review

The proceedings stem from previous investigations that uncovered cases of irregular labor,
particularly involving workers of Chinese origin, who were underpaid, forced to work long hours
in poor hygienic conditions, and denied social security contributions and legal protections.

The implicit objective of these inspections is to encourage internal regularization
and ensure that companies implement effective controls throughout the entire production chain.

Two possible scenarios may emerge from the inspections:

1. Judicial administration, based on the Italian Anti-Mafia Code, aimed at rebuilding “healthy”
   supplier networks where companies are found to have failed to carry out adequate checks along the supply chain.
2. Charges of labor exploitation, under Law 231, which could directly involve responsible managers
   and result in criminal proceedings.

The case recalls previous judicial administrations involving luxury brands such as Alviero Martini, Armani,
Valentino, and Dior, where the measures were applied not for direct exploitation,
but for the lack of effective supply chain controls.

In the case of Tod’s, however, the allegations reached the managerial level directly,
with formal accusations of labor exploitation.

Ultimately, the authorities aim to put an end to exploitative practices and ensure greater transparency
within the Italian fashion industry, with particular attention to suppliers and subcontractors.
A clear signal to the sector: brand prestige must go hand in hand with respect for workers’ rights
and rigorous control procedures.

Source: Il Sole 24 Ore