Illegal recruitment: Dior and Armani respond to Antitrust authorities

Gangmaster system: Dior and Armani respond to Antitrust authorities

“These are baseless accusations”, says Armani. Dior feels damaged and has therefore suspended relations with the manufacturers involved in the investigation by the Milan Prosecutor’s Office. After the Antitrust’s actions, a response from the two fashion groups needed to come.

Armani after the Antitrust’s actions

“Armani Group takes note of the investigation for alleged unfair commercial practices related to our institutional communication in the field of corporate social responsibility”, reads the release taken up by WWD. The companies involved are fully committed to cooperating with the authorities and believe that the allegations have no basis, and trust in a positive outcome of the investigation”.

And Dior

Dior’s response was different. The brand, controlled by the LVMH group, condemned these “unworthy acts, which contradict its values and the code of conduct signed by these suppliers”. And it clarified how such acts do not reflect the work of its artisans and ties to Italy. In addition to saying the aforementioned, Dior is cooperating with Italian authorities, adding that it has suspended orders with the suppliers involved in the investigation. “Despite regular checks, these two suppliers have evidently managed to hide these practices“, Dior noted.

The issue of cost

The fashion brand challenged some of the information circulated by the media and on social channels. In particular, the one that some bags sold at 2,600 euros cost only 53 euros to assemble. “Some articles report completely false facts, firstly indicating that the suppliers in question were producing women’s bags when in fact they were only involved in the partial assembly of men’s leather goods. And secondly, that the production costs of these bags are exaggeratedly low. It should be noted that Maison Dior’s profit margin is completely in line with that of the luxury industry”. The brand was keen to point out that it has worked with major Italian suppliers for more than 30 years, contributing to the creation of 4,000 jobs.

Photo from archive

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