Luxury Italian fashion houses raided by police in sweatshop investigation

Italian law enforcement officials conducted raids at the headquarters of over a dozen prominent fashion companies, investigating the potential use of exploitative labor practices. The operation targeted 13 firms, including some of Italys most famous fashion names such as Prada, Versace, Dolce & Gabbana, Missoni, and Ferragamo, where authorities requested access to internal documents.

The investigation focuses on whether these luxury brands source products like clothing, handbags, and belts from numerous sweatshops operating within Italy, many employing inexpensive Chinese labor. While none of the companies is currently under formal investigation, authorities aim to review their subcontractor lists and monitoring procedures for supplier compliance.

Underground workshops across Italy produce fast fashion items and counterfeit designer goods, generating billions of euros annually. The town of Prato in Tuscany, home to a large Chinese community, serves as a major hub for these operations. These workshops are often temporary setups, quickly dismantled to evade inspections.

Competition among Chinese-owned enterprises in the sector can escalate to violence. In April, a suspected gang-related shooting in Rome resulted in the deaths of an alleged Triad member and his partner, linked to disputes over control of factories where immigrants live in poor conditions and endure long working hours.

The fashion houses were implicated after authorities found clothing and documentation connected to them during multiple inspections of Chinese-run sweatshops, which have been described as modern slavery operations. Police now aim to determine the extent to which the 13 companies may have benefited from such labor.

Upon providing the requested records, companies have the opportunity to independently address any issues identified. Failure to do so could lead Milan prosecutors to take legal action. Other brands included in the investigation are Adidas Italy, Off-White Operating, Givenchy Italia, and Alexander McQueen Italia. Previous inquiries in Milan have examined potential worker exploitation at luxury brands like Dior, Armani, Valentino, Loro Piana, and Tods.

Opposition MP Marco Grimaldi criticized the fashion industry for relying on secretive Chinese subcontractors operating under illegal and exploitative conditions. He described the system as widespread, producing luxury goods at minimal cost while charging consumers exorbitant prices. Grimaldi urged Prime Minister Giorgia Meloni to confront the issue in parliament, emphasizing the damage to Italys high-fashion reputation.

Emma Pavanelli, another opposition MP, stressed the urgency of reforming labor practices in the fashion sector, calling for a fundamental shift to end the exploitation of workers. Italys small manufacturing firms account for roughly half of global luxury goods production, according to Bain consultancy.

In May, Italian fashion companies signed an agreement aimed at combating worker exploitation and improving labor standards.

Author: Ava Mitchell