-
Russia's economic growth slowed to 1% in 2025: Putin
-
Bethell spins England to 3-0 sweep over Sri Lanka in World Cup warm-up
-
Nagelsmann backs Ter Stegen for World Cup despite 'cruel' injury
-
Homage or propaganda? Carnival parade stars Brazil's Lula
-
EU must be 'less naive' in COP climate talks: French ministry
-
Colombia's Petro meets Trump after months of tensions
-
Air India inspects Boeing 787 fuel switches after grounding
-
US envoy evokes transition to 'democratic' Venezuela
-
Syria govt forces enter Qamishli under agreement with Kurds
-
Vonn says will defy injury and hunt for medals at Olympics
-
WHO wants $1 bn for world's worst health crises in 2026
-
France summons Musk, raids X offices as deepfake backlash grows
-
Four out of every 10 cancer cases are preventable: WHO
-
Sex was consensual, Norway crown princess's son tells rape trial
-
Sacked UK envoy Mandelson quits parliament over Epstein ties
-
US House to vote Tuesday to end partial government shutdown
-
Eswatini minister slammed for reported threat to expel LGBTQ pupils
-
Pfizer shares drop on quarterly loss
-
Norway's Kilde withdraws from Winter Olympics
-
Vonn says 'confident' can compete at Olympics despite ruptured ACL
-
Germany acquires power grid stake from Dutch operator
-
France summons Musk for questioning as X deepfake backlash grows
-
Finland building icebreakers for US amid Arctic tensions
-
Petro extradites drug lord hours before White House visit
-
Disney names theme parks chief Josh D'Amaro as next CEO
-
Disney names theme parks boss chief Josh D'Amaro as next CEO
-
Macron says work under way to resume contact with Putin
-
Prosecutors to request bans from office in Le Pen appeal trial
-
Tearful Gazans finally reunite after limited Rafah reopening
-
Iran president confirms talks with US after Trump's threats
-
Spanish skater allowed to use Minions music at Olympics
-
Fire 'under control' at bazaar in western Tehran
-
Howe trusts Tonali will not follow Isak lead out of Newcastle
-
Vonn to provide injury update as Milan-Cortina Olympics near
-
France summons Musk for 'voluntary interview', raids X offices
-
Stocks mostly climb as gold recovers
-
US judge to hear request for 'immediate takedown' of Epstein files
-
Russia resumes large-scale strikes on Ukraine in glacial temperatures
-
Fit-again France captain Dupont partners Jalibert against Ireland
-
French summons Musk for 'voluntary interview' as authorities raid X offices
-
IOC chief Coventry calls for focus on sport, not politics
-
McNeil's partner hits out at 'brutal' football industry after Palace move collapses
-
Proud moment as Prendergast brothers picked to start for Ireland
-
Germany has highest share of older workers in EU
-
Teen swims four hours to save family lost at sea off Australia
-
Ethiopia denies Trump claim mega-dam was financed by US
-
Norway crown princess's son pleads not guilty to rapes as trial opens
-
Russia resumes strikes on freezing Ukrainian capital ahead of talks
-
Malaysian court acquits French man on drug charges
-
Switch 2 sales boost Nintendo profits, but chip shortage looms
| SCS | 0.12% | 16.14 | $ | |
| RYCEF | 1.94% | 17 | $ | |
| BCC | 2.71% | 84.03 | $ | |
| RIO | 2.55% | 94.94 | $ | |
| JRI | -0.19% | 13.125 | $ | |
| BCE | 1.08% | 26.111 | $ | |
| RELX | -17.92% | 30.13 | $ | |
| VOD | 1.68% | 15.165 | $ | |
| CMSD | -0.71% | 23.91 | $ | |
| GSK | 0.99% | 52.995 | $ | |
| RBGPF | 0.12% | 82.5 | $ | |
| NGG | 1.58% | 85.965 | $ | |
| BP | 1.4% | 38.235 | $ | |
| AZN | -1.65% | 185.345 | $ | |
| CMSC | -0.38% | 23.66 | $ | |
| BTI | 1.29% | 61.785 | $ |
Italy's luxury brands shaken by sweatshop probes
A series of investigations into exploitative work conditions within fashion subcontractors has roiled Italy's luxury industry, with the government decrying attacks on "Made in Italy".
Five fashion brands have been put under court administration since 2024 following probes by Milan prosecutors that uncovered worker abuses and a lack of oversight into the supply chains of some of Italy's most respected brands.
Most recently, lawyers for luxury leather company Tod's were due in a Milan court Wednesday, where prosecutors want to impose a temporary advertising ban and outside administrators in light of what they have called "malicious" actions by the company.
The investigations led by prosecutor Paolo Storari have cast a spotlight on the dark underside of the luxury industry.
At issue is the near-ubiquitous practice of brands subcontracting work to suppliers, who in turn contract to others, amid ever-tighter margins and scant oversight of labour conditions.
To date, investigations have targeted Loro Piana, Dior's Italian subsidiary Manufactures Dior, Giorgio Armani Operations and Alviero Martini -- and prosecutors have suggested more probes could come.
Italy's government has gone on the offensive, with Industry Minister Adolfo Urso saying the reputation of Italian brands was "under attack".
It has proposed a certificate for luxury companies to show they are in compliance with current law -- a measure critics have called toothless, in part because it is voluntary and would unduly shield brands from liability.
"We are taking concrete measures to firmly defend Italian fashion, to protect its reputation and the values that have made it synonymous with beauty, quality and authenticity," Urso said in October.
- 'Chain of exploitation' -
Prosecutors last month said Tod's -- whose leather loafers can reach over $1,000 -- and three of its executives had "full awareness" of the exploitation of Chinese subcontractors but failed to set up systems to prevent it.
Tod's allegedly ignored its own audits revealing working hours and wage violations -- with workers paid as little as 2.75 euros per hour -- breaches of safety measures and what prosecutors called "degrading" sleeping areas within the factory.
Under Italian law, companies can be held responsible for offences committed by representatives -- such as approved suppliers -- acting in their interest.
Advocates for fashion industry workers have for decades pointed to widespread abuses in the supply chain.
Suppliers "are at the mercy of big brands that impose commercial conditions, starting with prices that are too low to cover all costs", said Deborah Lucchetti, national coordinator of the Clean Clothes Campaign in Italy.
That, in turn, fuels a system in which first-tier suppliers turn to subcontractors, imposing ever more stringent terms, which leads to labour abuses, most often against migrants.
"It's a chain of exploitation," she told AFP.
Italy's fashion suppliers are predominately small- and medium-sized companies, tens of thousands of whom have shuttered in recent years, according to industry associations, amid a luxury downturn and higher production costs.
Unable to invest, due to lack of guaranteed work from the commissioning brands and hyper-thin margins, the suppliers stay small. When a big order arrives, they turn to subcontractors for quick help, a system that "effectively pushes players in the supply chain to engage in illegal conduct", said Lucchetti.
Prosecutors said both Tod's and Loro Piana could not have been unaware that one of their main suppliers was externalising all its production -- given that the supplier did not have any production equipment, such as sewing machines, in its facility.
The companies targeted thus far have variously responded by cutting ties with the suppliers, condemning their actions, or blaming them for concealing abuses.
- Reputational risk -
Amid the reputational risk, some brands have sought to reassure consumers.
Last week, one of Italy's top luxury brands, Prada, invited journalists to its Scandicci factory outside Florence, showing the step-by-step transformation of supple leather into luxury handbags.
Asked about the investigations, Prada's Chief Marketing Officer Lorenzo Bertelli, who also heads social responsibility, said production had never been an afterthought for the company.
Other fashion executives, Bertelli said, don't view production "as an area of responsibility": "And this has led to many of things you have read in the newspapers."
Prada does not disclose how much of its production is in-house, but says it is the highest in the industry. Prada owns 25 factories, 23 of which are located in Italy.
Bertelli called it a "constant battle" to keep Prada's supply chain clean.
"We must constantly carry out inspections or checks on suppliers, this is the daily work we do."
O.Salim--SF-PST