13 more brands under investigation in Milan for labour exploitation
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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