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Original WSJ article is gated

Italian prosecutors investigate luxury brands Dior, Armani for “Made In Italy” products actually made by subcontractors within the European country exploiting low-cost Chinese labor

https://in.mashable.com/culture/78452/investigation-reveals-diors-2800-bags-cost-mere-57-to-make-netizens-say-bro-sabyasachi-ko-bhi-bata-d

• Italian prosecutors investigated the local supply chains of two major Italian fashion houses. Their investigation found that some designer handbags are manufactured by exploited foreign labor.

• Investigators interviewed workers from one of Armani’s subsidiaries, GA Operations, which hired a number of Chinese-owned subcontractors across Italy. These subcontractors paid migrant workers a few euros per hour.

• Prosecutors allege that some of the luxury handbags made by the fashion houses’ suppliers with the “Made in Italy” stamp are actually made in sweatshops within the European country, employing low-cost Chinese labor. They say many of the sweatshops fall extremely short of legal workshop codes.

• The Dior probe revealed that its four small suppliers employed 32 staff who worked around Milan. Two of the staff were immigrants who entered Italy illegally. Seven staff worked without proper documentation. The report stated that the staff worked “in health and hygiene conditions that are below the minimum required ethical approach.”

• Meanwhile, data mapping of the facilities’ electricity consumption revealed unbridled day and night production cycles, even during the holidays. Additionally, investigators found safety devices were removed from machinery to get faster operations.

• While Dior itself is not under criminal investigation, the contractors are under the radar. The Armani investigation also revealed similar violations.