Rome, December 06, 2025
Italian prosecutors have broadened their ongoing sweatshop investigation to include 13 major luxury brands, such as Gucci, Prada, and Yves Saint Laurent, amid allegations of migrant labor exploitation and unsafe working conditions in Italy’s fashion supply chains.
Expansion of the Investigation
The probe, which began last year, now targets luxury houses suspected of employing subcontractors who exploited largely Chinese and Pakistani migrant workers. Authorities uncovered violations related to wages, working hours, and housing conditions, marking this as the largest labor abuse inquiry to date within Italy’s luxury sector.
Labor Abuses and Supply Chain Violations
Investigations revealed sweatshop-like environments where affected workers faced unsafe working conditions and inadequate living arrangements. These findings cast a shadow over high-end brands whose reputations rely on the “Made in Italy” label. Luxury items such as bags, wallets, and clothing were found to be produced in these exploitative workshops.
Luxury Brands Under Scrutiny
Among the 13 brands now implicated are several subsidiaries of French luxury conglomerates: Kering-owned Gucci, Yves Saint Laurent, and Alexander McQueen, as well as LVMH’s Givenchy and Dior. Italian fashion houses including Prada, Versace, and Dolce & Gabbana are also involved, underscoring the widespread nature of the issue across top-tier luxury brands.
Prosecutorial Measures and Corporate Responses
Prosecutor Paolo Storari has formally demanded detailed disclosures from these companies concerning their governance frameworks and supply chain audits. While the brands themselves are not under formal investigation yet, raids on suppliers’ premises and company headquarters have already taken place. Some implicated suppliers are currently under temporary court administration aimed at preventing continued abuses.
In response, Dior severed ties with offending suppliers and intensified internal auditing after admitting that previous controls failed to detect labor violations. Investor groups have pressed LVMH for more robust transparency and monitoring protocols following reports of labor mistreatment.
Implications for Italy’s Luxury Industry
This investigation highlights increasing pressure on luxury fashion to enforce ethical sourcing and labor standards, challenging the industry’s image of exclusivity and quality associated with Italian craftsmanship. The ongoing inquiry signals a shift toward stricter regulatory scrutiny and accountability for supply chain management in the luxury market.
As the probe advances, additional developments are expected, with potential legal and reputational consequences for companies found complicit in labor exploitation. This case serves as a critical alert for business leaders, policymakers, and consumers worldwide demanding higher ethical standards in global luxury production networks.