Headlines
Italy moves to safeguard fashion sector reputation after labour scandals
Published by Global Banking & Finance Review®
Posted on July 22, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 22, 2025
2 min readLast updated: January 22, 2026
Italy plans certification to protect its fashion sector after scandals involving worker exploitation, affecting brands like Loro Piana and Valentino.
MILAN (Reuters) -A few unlawful businesses in the fashion supply chain have tainted the image of 'Made in Italy', Italy's industry minister said on Tuesday, adding that he is working on a certification scheme to remedy this after the latest high profile case.
Cashmere company Loro Piana, controlled by French luxury group LVMH, was put under judicial administration last week after prosecutors uncovered evidence of worker abuses in its supply chain.
The label was the fifth high-end brand to undergo such court monitoring in Italy since early 2024.
"We cannot allow the illicit behaviour of a few to compromise the reputation of the entire sector, penalising many virtuous companies and, consequently, our Made in Italy brand, which is a symbol of excellence and quality," minister Adolfo Urso told fashion trade bodies during a meeting, according to a source.
The ministry is working on a measure to certify the sustainability and legality of companies in the supply chain in advance, he added, so that brands do not have to answer for the conduct of their suppliers or subcontractors.
Units of fashion brands Valentino, Dior, Armani and Italian handbag company Alviero Martini were previously placed under administration in Italy for similar alleged worker exploitation.
In the case of Loro Piana, the Court of Milan found it "culpably failed" to adequately oversee its suppliers in order to pursue higher profits, according to the ruling.
Prosecutors in that case said the violation of rules among fashion companies in Italy was "a generalised and consolidated manufacturing method".
Italy is home to thousands of small manufacturers that make up 50%-55% of global luxury goods production, consultancy Bain has calculated.
Italian legal and political authorities, fashion industry bodies and trade unions signed an action plan in May to fight worker exploitation in the apparel and accessories supply chain, after prosecutors uncovered widespread abuse.
(Reporting by Giuseppe Fonte, writing by Elisa AnzolinEditing by Keith Weir)
Loro Piana was placed under judicial administration after evidence of worker abuses in its supply chain was uncovered by prosecutors.
Italy's industry minister is working on a certification measure to ensure the sustainability and legality of companies in the fashion supply chain.
Italy is home to thousands of small manufacturers that account for 50%-55% of global luxury goods production, according to consultancy Bain.
The Court of Milan found that Loro Piana 'culpably failed' to oversee its suppliers adequately in pursuit of higher profits.
In May, Italian legal and political authorities, fashion industry bodies, and trade unions signed an action plan to fight worker exploitation in the apparel and accessories supply chain.
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