Versace, Gucci & Co Under Police Scrutiny in Italy

On suspicion of labor exploitation, the Italian police have visited luxury brands including Dolce & Gabbana, Versace, Prada, Gucci, and Adidas Italy.

According to court documents reviewed by Reuters, the companies have been asked to submit documents related to their corporate governance and supply chain controls. Other companies affected include Missoni, Ferragamo, Off-White Operating, and Coccinelle. The 13 companies initially declined to comment on the matter.

Previously, during dozens of raids on Chinese-owned workshops, police found garments and documents relating to subcontracting for these brands. The current inquiries aim to assess the extent of the companies' involvement in labor exploitation and whether their internal control mechanisms are sufficient to prevent abuse. After submitting the requested documents, companies can proactively address any identified shortcomings by adjusting their organizational models. Should they fail to do so, the Milan public prosecutor's office reserves the right to impose further preventive or precautionary measures.

These raids led the Milan prosecutor's office in the past two years to place five other fashion companies--including Valentino and Armani--under compulsory administration, and to request the same for a sixth. However, in the case of the 13 companies currently under scrutiny, the quantity of products found in the workshops was reportedly lower, according to the documents. Wednesday's operation was led by the occupational safety unit of the Carabinieri in Milan.

Investigations in recent years have revealed a systematic problem of labor exploitation in Italy's fashion and luxury goods industry. With a 50 to 55 percent share of global luxury goods production, Italy is a key player in the sector. The Italian government is striving to protect the reputation of "Made in Italy." Industry Minister Adolfo Urso announced in October 2024 a draft law for state certification of fashion companies. This would allow companies to have the legal compliance of their supply chains certified by third parties. "With this measure, it will be possible to secure the Italian fashion supply chain and protect its worldwide reputation," Urso said at the time.

(Reporting by Emilio Parodi, written by Anneli Palmen, edited by Myria Mildenberger. For inquiries, please contact our editorial team at [e-mail] (for politics and economy) or [e-mail] (for companies and markets).)