In response to mounting evidence of labour abuse, Italian legal and political authorities, alongside fashion industry associations and trade unions, have signed a joint action plan aimed at curbing exploitation in the country’s apparel and accessories supply chain.
Italy is home to globally influential fashion houses such as Giorgio Armani, Dolce & Gabbana, Prada, and Versace, which collectively account for half of the world’s luxury fashion output. However, a recent investigation by Milan prosecutors revealed systemic abuse within supply chains, where underpaid workers—often undocumented migrants—were found manufacturing luxury goods under exploitative conditions. These items were reportedly sold to brands such as Dior and Armani for a fraction of their final retail prices.
The action plan, though not legally binding, represents a coordinated attempt to address what Milan prosecutors have termed “a generalised manufacturing method” that sacrifices worker welfare for profit. The initiative stems from a proposal first tabled by a Milan court in June 2024, following the uncovering of illicit workshops operating under inhumane conditions.
Earlier this month, an Italian court placed a Valentino subsidiary under judicial administration for one year after similar abuses were identified in its supply chain.
“The goal is that the court will no longer have to intervene,” stated Fabio Roia, president of Milan’s court system, during the memorandum signing.
Central to the agreement is the development of a supplier database to track workforce details and compliance metrics. Participating supply chain companies will voluntarily submit data on tax payments, social security contributions, and adherence to labour laws, with mandatory updates at least biannually.
Under the memorandum signed on 26 May 2025, fashion brands are expected to promote the platform among their suppliers and encourage their participation. However, companies may still engage suppliers who opt out of the data-sharing initiative.
The Lombardy regional government will issue a six-month renewable “transparency certificate” to firms enrolled in the scheme, aiming to incentivise ethical practices and enhance oversight across the sector.
Such initiatives are vital not only for safeguarding vulnerable workers but also for advancing transparency, accountability, and sustainability within the fashion industry. By emphasising ethical sourcing and strict compliance, the action plan compels brands to extend their responsibilities beyond profit margins.
