The Luxury Labor Crackdown: Armani Fined $4 Million USD For Greenwashing
The Armani Group, owner ofGiorgio ArmaniandEmporio Armani, has been fined $4 million USD (3.5 million euros) by Italy's antitrust regulator, just months after a year-long court administration of the company for unethical business operations was finally lifted.
According toReuters, the filing states that the Giorgio Armani group and one of its subsidiaries 'issued misleading ethical and social responsibility statements in contrast with the actual working conditions found at suppliers and subcontractors.' However, the company has denied the claims and plans to appeal the decision.
Despite Armani's messaging on sustainability, the regulator revealed that the company outsources most of its leather goods production to third-party entities, which have violated health and safety regulations and employed workers illegally. The concerns arose in the Summer of 2024, when the court placed the group under oversight for 12 months, a measure that was lifted in February 2025.
In a response, Giorgio Armani shared its 'disappointment and bitterness,' saying that it has 'always operated with the utmost fairness and transparency towards consumers, the market, and stakeholders, as demonstrated by the Group's history.'
Italian regulators have placed increasing pressure on luxury labels boasting the 'Made in Italy' tag to uphold humane, environmentally responsible, and most of all, legal practices. In recent years, other brands, includingValentino,Dior, andLoro Pianahave been at the center of similar controversies, also being placed in court administration for similar violations.
Ultra-luxury LVMH brand Loro Piana was the most recent to receive the regulatory measure. In July, anincidentinvolving the brutal beating of a worker who demanded unpaid wages from a subcontracted workshop surfaced. The incident, which happened at a subcontracted jacket workshop Northwest of Milan, led to the arrest of the facility's Chinese owner and its immediate by the local police department.
According toBusiness of Fashion, the Carabinieri police found that the facility, which produced Loro Piana cashmere garments, employed 10 Chinese migrant workers, 5 of whom were undocumented. Forced to work as much as 90 hours a week, all 7 days, the laborers were only paid €4 an hour, and housed in illegal dwellings inside the factory.
Such cases have shed light on the reality of 'greenwashing,' a term used to describe misleading social and environmental sustainability claims by brands, especially apparel manufacturers.
In an almost unanimous vote in June 2025, France's senate has passed a new bill targeting 'ultra' fast fashion companies in aim of reducing the environmental impact of the textile industry. However, while France targets Chinese fast-fashion labels likeTemu and Shein, introducing a new regulatory bill and major fines, Italy sets its sights on the domestic luxury market.
The shift in tone has upended both the connotations behind the 'Made in Italy' tag, challenging the country's status as a hub of authentic craftsmanship and luxury over the decades.
Stay tuned to Hypebeast for the latest fashion industry insights.
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