Authorities and brands commit to tackling exploitation: Progress or just a promise?
Apparently, the fashion industry is finally ready to address one of its most uncomfortable truths: illegal labour subcontracting.
On Monday, May 26, after a year of negotiations, the “Memorandum of Understanding for the Legality of Procurement Contracts in the Fashion Production Chains” was signed at the Milan Prefecture. The agreement seeks to promote legality, fairness, and transparency across the supply chain while supporting the sector’s development.
Prompted by investigations from the Milan prosecutor’s office—targeting brands including Alviero Martini S.p.A., Dior, Armani, and most recently Valentino—the Milan Prefecture identified the urgent need for concrete measures. This agreement is meant to improve working conditions, combat exploitation, and curb tax evasion and other illicit practices within fashion manufacturing.
Fashion industry supply chain: What the agreement proposes
The protocol introduces a “dual track” system:
- A digital supply chain platform: Manufacturing companies will voluntarily register and provide detailed data about their structure, workforce, and production phases.
- A “green list” of verified companies: Brands can access this list to identify suppliers with transparent and traceable operations.
To incentivise participation, compliant companies may earn a “Certificate of Transparency in the Fashion Sector” and gain access to regional benefits offered by Lombardy.
National relevance & industry reservations
Luca Sburlati, President of Confindustria Moda, emphasised the national significance of the initiative despite its territorial foundation:
“The national scope is clear—both due to the broad representation of the signatories and because fashion supply chains transcend regional borders.”
He suggests expanding the framework nationwide. Yet not all stakeholders are fully on board. The Camera Nazionale della Moda Italiana (CNMI) expressed concerns:
“Some essential elements must be redefined operationally to prevent unintended negative consequences for companies and the supply chain.”
In particular, CNMI is wary of potential breaches in brand confidentiality and the handling of sensitive data within the platform.
The agreement: Voluntary… For now
So, the fashion industry has finally signed an agreement to end illegal labour subcontracting—luxury sweatshops. But a healthy production chain costs more—are brands truly ready to pay the price?
Participation in the platform remains voluntary, raising concerns about the real impact of the initiative. Without mandatory enforcement or clear consequences for non-compliance, there’s a risk that only a handful of “virtuous” companies will engage—while others continue to operate in the shadows.
If transparency is truly the goal, will good intentions be enough?