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Slew of top brands suspected in Italy sweatshop probe / Photo: Alberto PIZZOLI - AFP/File
NYSE - LSE
Slew of top brands suspected in Italy sweatshop probe
Gucci, Prada, Versace and Yves Saint Laurent are among 13 luxury brands suspected of using subcontractors who exploited Chinese workers in Italy, according to documents issued Thursday by a Milan prosecutor.
In a request for information seen by AFP, the prosecutor indicated that luxury bags, wallets and clothing were found during searches of Italian workshops employing Chinese labour under exploitative conditions.
The brands -- which are not under formal investigation -- were asked to quickly provide documents on their supply chains, such as internal audits.
The documents concern Gucci, Yves Saint Laurent and Alexander McQueen -- which form part of French luxury group Kering -- as well as Givenchy, which is part of French giant LVMH.
They also name the Prada Group and its new acquisition, Versace, as well as Ferragamo, Pinko, Dolce & Gabbana, Missoni, Off-White, Coccinelle and sportswear giant Adidas.
Milan prosecutors have already launched investigations against Tod's, Loro Piana, Dior's Italian subsidiary Manufactures Dior, Giorgio Armani Operations and Alviero Martini.
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.
Under Italian law, companies can be held responsible for offences committed by representatives -- such as approved suppliers -- acting in their interest.
Italy's government has gone on the offensive, with Industry Minister Adolfo Urso saying the reputation of Italian brands was "under attack".
(B.Smith--TAG)
