Italy fines Armani for 'misleading ethical' statements
luxury
goods giant
Giorgio Armani
3.5 million euros ($4 million) for misleading consumers over dangerous conditions for workers making its bags and accessories.
The watchdog sanctioned the Milan-based fashion group for "misleading ethical and social responsibility statements that were at odds with the actual working conditions found at suppliers and subcontractors".
"The companies made untruthful ethical and social responsibility statements that were not presented in a clear, specific, accurate, and unambiguous manner," it added in a statement.
It said Armani outsourced a "large part" of its leather bag and accessory production to suppliers who relied on subcontractors.
The watchdog cited cases in which "safety devices had been removed from the machinery to increase production capacity, thereby posing a serious risk to the safety and health of workers."
"Hygiene and sanitary conditions were inadequate, while workers were often employed totally or partially 'off the books'."
The watchdog judged that "respect for workers' rights and health did not correspond to the ethical and social responsibility statements" issued by the company.
It said the brand was aware of the situation "which seriously harmed the workers who produced Armani-branded leather bags and accessories".
The watchdog did not say where the workers were based.
Giorgio Armani slammed the ruling, expressing "disappointment and bitterness" in a statement.
It said it would appeal the decision and vowed that it has "always operated with the utmost fairness and transparency towards consumers".
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