It has been reported that Christian Dior and Armani, world-renowned luxury brands, are being investigated by Italian authorities for allegations of worker exploitation. According to ANSA, an Italian news agency, the Italian Competition Authority (AGCM) is investigating allegations that workers employed by subcontractors of the two companies are being paid below the minimum wage or working excessive overtime in an improper working environment.

AGCM stated in a statement that the subcontracting companies of the two companies exploited workers to produce products, and that promoting their craftsmanship and high quality through this practice constitutes consumer deception. Accordingly, they conducted a search and seizure of the business premises of the two companies in Italy, along with the financial police.

Armani Group has stated that it will fully cooperate with the investigation and believes the allegations are unsubstantiated. They also expressed their confidence in a positive outcome after the investigation.
On October 10th of last month, the Milan court ordered a one-year judicial administrator to oversee the bag manufacturing company of Dior Italy, a subsidiary of LVMH's Louis Vuitton Moët Hennessy. Dior is one of LVMH's leading fashion brands and is suspected of neglecting worker exploitation by using illegal Chinese stayers to operate factories 24 hours a day. The cost of these bags was found to be around 80,000 won, but they were sold at Dior stores for 3.84 million won.

Armani is also under investigation for similar issues. Armani's subcontractor paid 2-3 euros (approximately 3,000-4,000 won) to workers for 10 hours of work, making bags and selling them to Armani suppliers for 93 euros (approximately 140,000 won). These bags were later found to be sold at Armani stores for 1,800 euros (approximately 2.67 million won).

Italian authorities plan to investigate not only whether the two companies violated labor laws but also whether they violated consumer protection laws in their marketing and sales processes. In particular, they believe that the companies' practice of using exploited workers to produce inexpensive products and selling them at high prices while claiming craftsmanship and high quality is a misrepresentation to consumers.

Financière Agache, the holding company of LVMH, headed by Frédéric Arnault, the fourth child of Chairman Bernard Arnault, owns 96% of Christian Dior. Against this backdrop, allegations of worker exploitation by Dior and Armani are raising further controversy.
Italian authorities plan to thoroughly investigate whether the two companies have violated labor laws and consumer protection laws. The results of these investigations could have a significant impact on the brand image of the two companies, and thorough introspection and improvement efforts will be needed to regain consumer trust.

This case is likely to serve as a reminder of the issue of worker exploitation hidden behind the high-priced products sold by luxury brands. Consumers are now paying more attention to whether ethical standards are being upheld in the production process of products, not just the quality of the products.
For luxury brands to meet these consumer demands, efforts are needed to protect the rights of workers and ensure fair treatment in the product production process. This is not just about avoiding legal issues, but also a crucial element for the sustainable growth of the brand.

It is necessary to pay attention to what actions Dior and Armani, among other luxury brands, will take in the future, and what conclusions the Italian authorities will draw from their investigations. To prevent such incidents from occurring again, companies should strengthen transparent management and ethical production processes.

※ This article is a clearer and more organized version based on the content from ANSA, an Italian news agency.