Information
The Italian competition watchdog AGCM and the Guardia di Finanza financial police have initiated a second investigation this year into Italy’s Armani Group and France’s Dior. Inspections were conducted at the Italian headquarters of both companies, scrutinizing allegations of misleading consumers about their social commitments and the craftsmanship of their luxury items, which are often priced at thousands of euros. The investigation focuses on whether the companies falsely advertised their products as being handcrafted by skilled artisans.
Additionally, both companies are under investigation for their labour practices, particularly concerning the treatment of workers employed by subcontractors. The AGCM is examining whether these workers received inadequate wages, worked excessive hours, and faced poor health and safety conditions. The authorities are also probing potential violations of the consumer code, especially regarding the companies’ claims about their ethical standards and social responsibility. While the Armani Group has expressed its willingness to cooperate and expects a favorable outcome, it maintains that the allegations lack merit.
Source: AP, dpa, Reuters
So what
Even though most people think of slavery as a thing of the past, in reality there are more people in modern forms of slavery than at the hight of the transatlantic slave trade. While awarness is growing, brought into the spotlight by events such as the Qatar Football World Cup and China’s use of forced labour. However, it is almost certain that more needs to be done to stop this exploitative process, particularly against large companies such as this. Recently, the EU has introduced regulations for companies around their supply chain, possibly leading to this action; it appears likely that the companies could face significant penalties. At the end of the day, if a company knowingly uses or works with a company that uses slaves then they should face significant penalties and companies should take significant steps to conduct indepth due diligence on all companies they are assocaited with.
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