Dior Facing the Heat Due to Allegations of Labor Exploitation
Dior Facing the Heat Due to Allegations of Labor Exploitation
A recent Italian Police raid uncovered that Dior uses suppliers who were exploiting workers to produce its expensive luxury bags. A full investigation is now underway by the Milan prosecutors, who are investigating the “supply chains of more than a dozen big-name – but largely unnamed – fashion brands. A Milan court has appointed a commissioner to oversee the operations of Dior Manufactures SRL, an LVMH-owned maker of Dior-branded handbags, after an investigation into four of its suppliers in and around Milan “uncovered illegal working conditions for staff,” (Reuters and The Fashion Law).
An investigation has uncovered that third party suppliers were exploiting workers under poor conditions to produce the bags for a fraction of the retail price. The Reuters publication noted that recent on-site inspections and related checks have sparked claims of exploitation by prosecutors, who claim that laborers “were employed for extended hours, working often into the night and during holidays,” while some individuals were sleeping where they worked and lacked “regular contracts,” and two entered Italy illegally (Reuters). Milan prosecutors also found that Dior handbags made by Chinese-owned subcontractors for ~53 euros were sold by Dior for ~2,600+ euros.
This incident occurred just a few months after Armani faced legal scrutiny in Italy. In April, an Italian court disclosed a labor issue involving at least one of Armani’s suppliers who allegedly used subcontractors violating national labor laws. According to a court order from Milan, the Armani supplier, Manifatture Lombarde, “used subcontractors in the Milan area that employed undocumented migrants for the production of Armani bags, leather goods, and other accessories.” These individuals were subjected to unfavorable working conditions, “including requirements that they work a greater number of hours than the company officially declared and the payment of wages of between 2 and 3 euro ($3.25) per hour,” (The Fashion Law). The AFP reported, “In a ruling dated April 3, the court appointed a consultant for one year to work alongside managers [at Giorgio Armani Operations] to improve relations with suppliers.”
LVMH nor Armani, the parent companies, are under investigation in this case, “while the suppliers targeted by the probe face accusations of worker exploitation, copies of the court decisions seen by Reuters showed,” (Reuters).
According to Italian law, brands that outsource production are required to conduct thorough checks on their suppliers (Reuters). While Italian magistrates previously focused on mistreating suppliers in worker exploitation cases, Milan prosecutors now use a law provision meant for Mob-infiltrated companies, which involves placing such companies under court administration with special commissioners appointed to manage them (Reuters).
Milan prosecutors are intensifying efforts to regulate fashion/luxury brands’ supply chains due to concerns over poor working conditions. Companies like Armani and Dior face challenges in monitoring complex supply chains, reflecting a broader trend of regulatory focus on transparency and sustainability in the fashion industry.
Real Authentication is following the details of this investigation closely. Stay tuned for further updates.
Sources:
– Reuters
– The Fashion Law
Disclaimer: Real Authentication is a 3rd party authentication service and is in no way affiliated with the brands it services.
About Real Authentication: Real Authentication’s mission is to provide individuals, dealers, and global brands with unparalleled confidence and peace of mind by leveraging our deep expertise and years of experience to deliver the most trusted and accurate luxury goods authentication service available. Follow this blog for more industry news, tips to spot counterfeits, and more! You can also connect with us on social media on Facebook, Instagram, TikTok, Pinterest, and LinkedIn.
Need Expert Authentication?
Our user-friendly process lets you receive authentication in as little as 1 hour from anywhere in the world.
![Real Authentication App Step 1 Real Authentication App Step 1](https://realauthentication.com/wp-content/uploads/elementor/thumbs/ra-step-01-q6dr5vrtbk6cwfkd50cpktuiwwc4f1nrquf0kq4sai.png)
1. Upload Your Photos
Simply upload images showing your product—anything from luxury handbags to clothing, shoes, and more.
![Real Authentication App Step 2 Real Authentication App Step 2](https://realauthentication.com/wp-content/uploads/elementor/thumbs/ra-step-02-q6dr5vrtbk6cwfkd50cpktuiwwc4f1nrquf0kq4sai.png)
2. Product is Verified
Two or more expert luxury authenticators typically review each product. Orders stay in your account for future reference. Added layers of AI technology and Quality assurance help to ensure accuracy prior to approval.
![Real Authentication App Step 3 Real Authentication App Step 3](https://realauthentication.com/wp-content/uploads/elementor/thumbs/ra-step-03-q6dr5vrtbk6cwfkd50cpktuiwwc4f1nrquf0kq4sai.png)
3. Get Certification
Instantly receive electronic certification. Upgrade your order at any time to receive official documentation—from Authenticity Cards to Written Statements.