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13 more brands under investigation in Milan for labour exploitation

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A crisis for the fashion industry, or a reflection of the economic system at large?


Authorities in Milan are cracking down on labour exploitation in the fashion supply chain, placing 13 more brands under investigation after a major operation revealed severe irregularities. A sweeping inquiry has uncovered new allegations of abusive conditions linked to several manufacturers, prompting prosecutors to widen the scope of the probe. The Milan Prosecutor’s Office has now demanded documentation from 13 major fashion brands to demonstrate their compliance with labour and safety laws. Garments tied to these companies were discovered in warehouses run by Chinese subcontractors, leading investigators to call for deeper scrutiny.

From D&G and Prada to Adidas, Versace, and Gucci, the Milan Prosecutor’s Office has sent documentation requests to verify compliance with safety and legal controls.

But is labour exploitation unique to fashion, and to Italy, or is it a feature of the economic system itself?

The Milan probe: fashion & illegal hiring


Once again, the fashion industry is in the spotlight. Another 13 major groups have come under the scrutiny of Milan prosecutors. Late on Tuesday, 2 December, labour protection officers of the Carabinieri, under the mandate of Prosecutor Paolo Storari, carried out raids at corporate offices, demanding documents proving that safety and legal compliance checks had been performed along the supply chain.

Within days, the companies must provide investigators with the requested materials. Based on this documentation, the prosecutor’s office will decide whether to seek judicial oversight—under Italy’s anti-mafia legislation—or bring formal charges related to illegal labour intermediation (the so-called caporalato system) under Law 231.

Milan: 13 more brands under investigation


13 more brands under investigation — who are they?
The brands required to submit documentation include Missoni, Off-White Operating, Adidas Italy, Yves Saint Laurent Manifatture, Givenchy Italy, Ferragamo, Versace, Gucci, Pinko, Prada, Coccinelle, Dolce & Gabbana, and Alexander McQueen.

Investigations have identified cases of “Chinese migrant labour being used under conditions of severe exploitation,” with work performed “on behalf of” the brands listed. Workshops visited across Lombardy, Tuscany, and Marche revealed hazardous conditions, extremely low pay, excessive hours, and workers without contracts, protective equipment, or overtime compensation—many threatened because of their irregular immigration status.

The documentation requested from the companies is extensive: registry extracts, contracts, organisational charts, role descriptions, board minutes from January 2023, internal control system reports, supplier accreditation procedures, internal audit plans and results, monitoring and traceability plans, supplier lists, and financial statements for 2023–2024, including sustainability reports.

The prosecution appears to be urging companies to regularise their operations.

Patterns of exploitation 


This investigation is part of a broader effort to dismantle subcontracting networks marked by severe labour exploitation. Previous cases involving Alviero Martini, Armani Operations, Loro Piana, Valentino Bags, and Manifatture Dior revealed similar dynamics. Tod’s was also investigated, although judicial oversight was denied due to jurisdictional and substantive considerations.

Except for the unusual Tod’s case, interventions have not begun from direct sweatshop conditions linked to major brands. Instead, they start from the observation that checks along supply chains were insufficient or ineffective, allowing illegal practices to persist.

Judicial administration—already implemented for certain companies—aims to establish transparent supplier registries. Separately, illegal labour charges may lead to managers being held personally accountable in court.

Made in “Chitaly”: Chinese workers operating in Italy


In a post dedicated to the contradictions of 1 May 2023, we discussed “Made in Chitaly” to illustrate how the abuses seen in Rana Plaza or in the forced labour of Uyghurs in China have parallels in Italy. Thus, we see a clear, global pattern.

To preserve high profit margins, brands outsource production to Chinese-run workshops, requesting the lowest possible prices. This keeps the mythology of “Made in Italy” alive. At least for those with no understanding of quality but who seek only a famous label. Minimum wage is nowhere to be found.

Yet major publications, including Business of Fashion, frame this as an Italian issue. But is it truly confined to Italy?

From subcontracting to the system: the wider mechanism


While these cases occur in Milan, the underlying pattern is not local but global. Labour exploitation involving Italian brands may describe the immediate facts, yet the mechanism extends far beyond Italy. Opaque, multilayered subcontracting chains are deliberately structured to reduce costs through distance and deniability. Each additional layer dilutes responsibility, making it easier for major groups to claim ignorance while benefiting from lower production costs.

Fashion is not unique in this respect. The same system is at work across logistics, agriculture, electronics, beauty, automotive manufacturing, and more. Wherever cost reduction becomes the primary objective, labour is the pressure point.

The real issue: capitalism as the underlying engine


The fashion industry is now deeply entrenched in global capitalism, shaped by conglomerates such as LVMH, Kering, and Richemont, as well as private equity. In fact, luxury giants and shareholder rule. Publicly traded empires prioritise profit margins, scalability, and acquisitions. Fashion is no longer about creativity—it is a financial asset.

Let’s be direct: sweatshops and fashion are connected, but fashion did not invent exploitation. It merely mirrors the logic of the economic system that governs it. What we see in these investigations is not an isolated malfunction but a structural feature of capitalism: extraction, exploitation, and the relentless pursuit of cheaper labour.

There is no fully ethical business under capitalism—only degrees of complicity.

We suggest reading this post: Behind the Seams: Fashion Industry & Forced Labour

Social washing as the final disguise


As public scrutiny increases, so do corporate campaigns emphasising social responsibility. This is social washing: the social counterpart of greenwashing. Marketing narratives multiply, while evidence remains scarce. Ethical imagery obscures extractive practices. The gap between branding and reality continues to widen.

In this context, social washing becomes the final layer of the system—an effort to reassure consumers while the underlying logic remains unchanged.

Final thoughts


The expansion of the probe, with 13 more brands under investigation in the Milan area, sends a clear signal. It’s a stark warning for the industry — but will shoppers take notice, or simply shop as usual?

Yet, this is not a uniquely Italian scandal, nor a flaw specific to the fashion industry. It reflects a global economic structure that treats labour as a cost to be minimised. Social responsibility campaigns may attempt to soften the narrative, but they cannot obscure the systemic logic that produces these outcomes. Read: capitalism.

Until that logic is questioned, cases like these will continue to surface—across fashion and every other industry built on the same foundations. And everyone will just say: we didn’t know…

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Next in line: Loro Piana investigated for labour exploitation

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The count begins again — yet another high-end brand faces allegations, exposing systemic abuses in fashion’s supply chain


Next in line: Loro Piana.
The luxury label has become the latest name under scrutiny. So, the count begins again. Another crack in the polished image of luxury fashion.

The Milan Court has placed Loro Piana S.p.A., part of the LVMH group and chaired by Antoine, the son of French tycoon Bernard Arnault, under judicial administration for one year. The company is accused of indirectly subcontracting production to Chinese-owned firms allegedly involved in labour exploitation.

This makes it the fifth luxury brand caught in the web of investigations into labour rights violations within Italy’s high-end supply chain — following Giorgio Armani Operations, Alviero Martini S.p.A., Manufactures Dior, and Valentino. So far, charges against the first three were dropped before conclusion, but the abuses were real.

As Corriere reports, “Loro Piana S.p.A. failed to verify the actual operational capacity of the contractors and subcontractors it relied on, and neglected to carry out meaningful inspections or audits over the years to assess the true state of its supply chain and working conditions.”

This development clashes with the recent signing of a “protocol of understanding,” involving the country’s most representative trade unions and employers’ associations, aimed at ensuring compliance with the law within the high-end fashion supply chain. Yet their actions tell a different story.

Loro Piana: The investigations reveal systemic issues in luxury fashion


According to prosecutors, Loro Piana outsourced the production of garments — including jackets — to third-party companies where labour exploitation allegedly occurred. The Milan court has placed the brand under one year of judicial supervision, which may be lifted early if the company takes adequate steps to comply with labour laws.

As reported by Corriere della Sera, the investigation revealed that Loro Piana entrusted manufacturing to Evergreen Fashion Group S.r.l., a company that lacked its own production facilities. Evergreen subcontracted the work to Sor-Man S.n.c. in Nova Milanese. Without sufficient production capacity, Sor-Man outsourced once again — this time to Chinese-managed factories Clover Moda S.r.l. (in Baranzate) and Dai Meiying (in Senago).

These facilities reportedly employed undocumented Asian workers off the books, under inhumane and unsafe conditions. Workers were housed in illegal dormitories and forced to endure gruelling shifts — including nights and public holidays — as evidenced by spikes in electricity usage. They were paid far below the legal minimum wage, operated hazardous machinery without proper training, and lacked both health monitoring and basic workplace protections.

According to the investigation, Loro Piana’s production model was structured to cut costs and maximise profits. 
Indeed, that’s how capitalism works, isn’t it?

Final thoughts


In case we needed further proof: this isn’t just about Loro Piana. It never was. What we’re seeing is a pattern.
Subcontracting is not an accident — it’s a symptom of a supply chain built on deliberate denial.
The real issue isn’t one brand. It’s the system itself.
A system fuelled by capitalist logic: extraction, exploitation, and carefully maintained opacity.

For further context, revisit this post:
👉 Valentino Under Investigation: Subcontracting as a Supply Chain System

The count has begun again.
Next in line: Loro Piana.
And after the roll call is complete — after one name, then another — will anyone finally admit the truth?
This isn’t about a few bad apples.
It’s about a rotten tree.

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Illegal labour subcontracting in the fashion industry: A landmark agreement signed

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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?

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Luxury sweatshops: “What people don’t want to see”

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The ugly truth behind the fashion industry — and why consumers look away


Luxury sweatshops are a glaring yet often ignored reality in the fashion world. A disturbing contradiction, indeed. Last night, RAI3’s Report exposed how major luxury brands—including Alviero Martini, Giorgio Armani, Dior, and Valentino—outsource production to factories where workers endure deplorable conditions. The investigation also revealed systemic tax evasion, helping explain how these brands maintain profits despite market instability.

In essence, luxury brands pay an average production cost of 30 to 50 euros in the outskirts of Milan, then sell these items in Via Montenapoleone for 1,500 to 2,500 euros.

The narrative pushed by these fashion giants is predictable: blame the Chinese subcontractors for exploiting workers. But the truth? The real culprits are the brands themselves—maximising profits while squeezing contractors, who are underpaid and forced into unethical labour practices. Whether subcontractors are Chinese or Italian, the exploitative practice remains the same.

Luxury sweatshops: Why does this keep happening?

Two key reasons:

  1. This is standard practice. Without strict, enforceable regulations, nothing will change. Voluntary agreements and empty promises won’t fix a broken system.
  2. Consumers ignore it. As one anonymous interviewee admitted: “It’s something people don’t want to see.” Luxury sweatshops and exploitative subcontracting happen in plain sight—yet we choose to ignore them.

What’s even more ironic? People baulk at prices from independent designers—brands with tiny margins that fight to produce ethically—yet stay silent when luxury brands demand astronomical markups built on exploitation.

Final thoughts: The death of true luxury


We’ve said it before: luxury is dead. The existence of luxury sweatshops proves it. Today’s “luxury” is a hollow status symbol, propped up by human suffering.

But we can change this. Real luxury isn’t about a logo or a price tag. It’s about craftsmanship, fairly paid. Ethical labour. Skilled hands treated with dignity. High-quality materials and exclusivity –  which cannot come from mass production at the cost of people and the planet.

It’s time to reject complicity. 

Reject fake status symbols. Vote with your wallet. No luxury can exist at the cost of human dignity.  Support brands that value ethics over exploitation. 

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Valentino under investigation by Milan Court

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Subcontracting: A supply chain system built on denial


Valentino is the latest brand to come under scrutiny by the Milan Court.
Specifically, Valentino Bags Lab Srl—a subsidiary of the Roman fashion house that produces bags and travel accessories—is being investigated for subcontracting production to Chinese factories that allegedly exploited workers.

According to a 30-page court decree reported by Reuters, judges overseeing preventive measures appointed a one-year administrator to Mayhoola’s investment firm (the Qatari parent company of Valentino) for failing to ensure “adequate checks on contractors’ working conditions or technical capabilities.”

Milan’s Carabinieri Labour Protection Unit—a specialised police division dedicated to enforcing labour law—inspected seven Chinese-owned subcontractor factories on the city’s outskirts that were producing Valentino bags. They found 67 workers: seven undeclared and three undocumented. The Carabinieri report outlines exploitative conditions, including sub-minimum wages, excessive working hours, poor safety standards, and illegal dormitories with unhygienic conditions.

This marks the fourth investigation shaking the luxury fashion industry, following similar actions involving Alviero Martini SpA, Giorgio Armani Operations, and Manufactures Dior, all of which were later revoked.

Subcontracting: A supply chain system built on denial


The low-cost subcontracting system isn’t driven solely by top brands seeking higher profit margins—manufacturers operate under the same logic. It’s a well-known practice across the industry: everyone does it, yet all pretend it doesn’t exist. Everyone passes the buck. No one ever seems to know anything.

To maximise profits, brands demand ever-lower production costs. In response, manufacturers must preserve their margins, so they outsource to third parties. This results in extended chains of subcontractors, often with little or no oversight. Production is externalised, and brands relinquish control over their supply chains—whether intentionally or by design.

More than fashion: A symptom of capitalism


The system of subcontracting—especially low-cost, opaque subcontracting chains—is not unique to the fashion industry. It’s a symptom of a broader capitalist dynamic marked by extraction, exploitation, and systemic opacity.
In particular:

1. A practice typical of extractive capitalism

It stems from a model where profit maximisation overrides everything else, including transparency, workers’ rights, and environmental responsibility. Subcontracting allows companies to:

  • Reduce direct liability
  • Cut costs
  • Avoid regulations and unions
  • Claim ignorance when abuses occur (“plausible deniability”)

This logic is widespread across sectors like construction, electronics, agriculture, logistics, and, of course, fashion—any industry where labour can be shifted to where it’s cheapest and least protected.

2. Amplified in the fashion industry

Fashion epitomises this system for several reasons:

  • Rapid seasonal cycles and the demand for constant newness push production to be faster and cheaper.
  • Fragmented, globalised supply chains make transparency difficult.
  • Brand-driven business models mean labels rarely own the factories they depend on, distancing themselves from labour conditions.
  • Marketing dominates manufacturing—brands invest more in image and storytelling than in how and where their products are actually made.

So while fashion didn’t invent the system, it amplifies it—making it one of the clearest expressions of capitalism’s outsourced conscience.

Final thoughts


In conclusion, Valentino is just the latest in a growing list of top-tier brands caught in the web of exploitation. But the real issue isn’t just one brand—it’s the system itself.

This ongoing scandal undermines the luxury industry’s carefully curated narrative. Premium prices are justified in part by the “Made in Italy” promise: craftsmanship, quality, and ethical production. Now, that promise rings hollow. The growing popularity of TikTok exposés on Chinese-made luxury bags reflects a broader disillusionment. People are waking up to the disconnect between branding and reality.

It’s not about bad apples. It’s about a broken tree.

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Workers’ Rights in the Fashion Industry

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A reflection on the International Workers’ Day


As today we commemorate International Workers’ Day once again, it prompts us to pause and reflect on the state of workers’ rights within the fashion industry. International Workers’ Day is synonymous with Labour Day, annual holidays to celebrate the achievements of workers.

Some facts about workers’ rights in the fashion industry:


1. “Luxury brands show poor efforts to reduce forced labour.” (source KnowTheChain). Specifically, KnowTheChain evaluated fashion companies’ adherence to International Labour Organization standards in their supply chain, establishment of internal responsibilities to address forced labour risks, support for worker empowerment, and implementation of programs to address forced labour allegations. So, companies received scores ranging from zero to 100, with the average fashion company scoring 21. Luxury companies rank second lowest in average score among all sub-sectors, making them particularly flagrant offenders.
In short, among the luxury companies assessed:
LVMH: 6 out of 100
Prada: 9 out of 100
Kering: 23 out of 100
Only seven out of 20 disclosed the complete first tier of their suppliers, including names and addresses.

2. Alviero Martini: under investigation for starving wages.

3. Giorgio Armani Operations: put into receivership for labour exploitation.  Workers in Chinese-run workshops paid 2-3 euros/hour, judges say. Probe finds migrant workers eating, and sleeping in factories.

4. Zara and H&M‘s cotton suppliers: involved in land grabbing, illegal deforestation and human rights violations (source Earthsight). Also, this revelation is particularly alarming as it implicates Better Cotton, a certified sustainable cotton label.

5. Low wages made Bangladesh the second largest clothing exporter after China, developing a huge industry for the country. There are about four million garment workers, mostly women, whose wages are the lowest in the world. In addition, the inflation and the devaluation of the taka against the US dollar (30% from the beginning of 2023) created unsustainable conditions for workers. Specifically, garment workers in Bangladesh make clothes for large groups such as H&M, Zara, Gap, Levi’s, Next, Asos, and New Look.

6. After the Jaba Garmindo factory bankruptcy in Indonesia, 2,000 Indonesian garment workers have fought for the $5.5 million legally owed in severance pay since 2015. The workers made clothes for Uniqlo and German fashion brand s.Oliver, among others. (source cleanclothes.org)

7. China is the biggest exporter of ready-made clothes, monopolising nearly 40% of the global garment industry. Driving China’s $187 billion garment trade are over 10 million garment workers. People who toil under oppressive and exploitative working conditions, mostly for high street brands. …While foreign brands’ business is booming, China bans the fundamental human right of workers to form and join independent trade unions. Driving a race to the bottom on wages and working conditions, brands expect low production prices and a compliant workforce and governments allow this along with factory owners out of fear of losing foreign business. Exploiting this arrangement is the Asian retail giant, UNIQLO. (source waronwant.org).

Conclusion: what about consumers’ role?


While we commemorate International Workers’ Day, we’re compelled to confront a shameful truth about workers’ rights in the fashion industry. In fact, workers are often regarded as nothing more than commodities that brands can exploit for their own profit. 

The absence of moral fabric within the industry is evident, as is the disregard shown by consumers who choose to ignore this issue despite the wealth of available information.

But why do people ignore human rights and still support these brands through their consumption choices?

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Behind the Seams: Fashion Industry & Forced Labour

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Understanding the joint roles of brands and consumers


Let’s delve “behind the seams” to unveil the link between the fashion industry and forced labour. The connection is robust, a topic often discussed yet incredibly overlooked by consumers despite the information.

In a recent post, we exposed the symbiotic relationship between luxury brands and fast fashion, both operating within the capitalistic framework. Today, we peel back another layer, examining recent cases.

Behind the seams of luxury brands


First, we happened to read a BOF post: “Luxury brands lag on efforts to reduce forced labour.” Reduce? But isn’t it appalling that brands discuss reducing forced labour instead of eliminating forced labour? By the way, the graphic in the attachment gathered luxury brands and fast fashion brands. All the most popular ones! (see it here).
Second, these days, the news reported the case of Alviero Martini. The company is under investigation for starving wages.

These two elements confirm our thesis: luxury brands and fast fashion share the same pattern, just for different pockets. But, above all, they highlight how deeply this issue is rooted in the fashion system, revealing it as a consolidated practice to maximise profit.

Also, it is interesting to notice that luxury brands often blame fast fashion while hiding their practices that are no different! Luxury brands exploit people’s work precisely as fast fashion does. Whatever the “made in” label says.

According to “Knowthechain” – a non-profit organisation:
“Today, an estimated 24.9 million people around the world are victims of forced labour, generating $150 billion in illegal profits in the private economy.”

Forced labour & modern-day slavery


Forced labour refers to individuals compelled to work against their will, under threat of punishment or coercion. In other words, individuals suffer exploitation as they are deprived of their freedom, coerced into labour without fair remuneration, and subjected to conditions over which they have no control. Forced labour can take various forms, including human trafficking, debt bondage, and other forms of modern slavery, and it is a violation of fundamental human rights as well as international labour standards.

Although condemned and prohibited by national and international laws, the practice is widespread. What’s worse? People, through their purchases, endorse this despicable system.

The fashion industry has no moral fabric, just as individuals who ignore the issue despite the available information.

Are you willing to shut your eyes when buying a logoed bag?
Did you know there’s an alternative? Small, independent brands offer luxury handbags with the finest materials, quality and skilled craftsmanship, all at just 1/3 the price of a branded bag. But while the logoed ones may be easy to sell, only a niche audience can appreciate true quality.

Your decisions as a consumer can shape an industry that values humanity over profit. Don’t compromise ethics over status.

What happens “behind the seams,” the dark connection between the fashion industry and forced labour, is extensively covered in the media. Read, share, and take action. But do not close your eyes. Ignorance is not an option; it’s time to confront the truth.

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