Armani, Dior Face Antitrust Probe in Italy

By Mauro Orru

Italy's competition watchdog launched an investigation into Giorgio Armani and Christian Dior, saying the luxury-goods companies might have resorted to illegal labor practices to produce and sell their high-priced goods.

The Italian Competition Authority, or AGCM, said the companies may have relied on supplies from workshops where laborers receive inadequate wages and work overtime in poor health and safety conditions, while emphasizing the craftsmanship of their goods to promote and sell them to customers.

Armani and LVMH Moet Hennessy Louis Vuitton, which owns Dior, didn't immediately respond to requests for comment.

The probe comes weeks after an investigation by Milan prosecutors found workshops making handbags and other leather goods for Armani and Dior used exploited foreign labor to produce the high-end products at a fraction of their retail price.

The AGCM said antitrust officials had conducted inspections at Armani and Dior premises on Tuesday.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 17, 2024 03:09 ET (07:09 GMT)

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