MILAN — As Italy was readying for the August lull, local trade unions Filctem Cgil, Femca Cisl and Uiltec Uil issued a statement reiterating their opposition to any legislation that would expand “legal immunity from prosecution” for brands whose supply chain partners were found to be engaged in wrongdoings.

It was yet another development in the ongoing scandals that have rocked the luxury fashion industry here, shaking both its reputation and business practices.

You May Also Like

Over the past two years investigations by a Milan court uncovered ties of luxury brands to subcontractors allegedly involved in sweatshop schemes, raising concerns about the industry’s ability to manage its supply chains effectively.

The backlash has led brands and industry associations to pressure domestic policymakers to come to the rescue and define nationwide auditing standards and regulation protocols promoted by the Ministry of Enterprises and Made in Italy.

In particular, Camera Nazionale della Moda Italiana and Confindustria Moda have been among the strongest supporters of a shared, nationwide auditing system. Legislation had seemed to move swiftly through several contacts with Minister Adolfo Urso, which led to a draft proposal for a voluntary certification for fashion brands’ value chains, aimed at ensuring legality and traceability throughout the entire production process, across all tiers of subcontracting.

However, the bill — which had already passed a Senate Commission vote — was stalled by the Lower House Commission of the Italian Parliament at the end of 2025. The move resulted partly from an earlier backlash from trade unions.

The most recent developments suggest that the government intends to proceed regardless.

Pressure from the European Union is certainly a factor. The bloc is to enforce several new directives aimed at increasing transparency in supply chains, such as the Corporate Sustainability Reporting Directive, the Corporate Sustainability Due Diligence Directive, as well as the EU Forced Labor Regulation. The latter, set to take effect in 2027, will ban within the EU the sale of goods made using forced labor, affecting all stages of the supply chain.

But establishing the legal terms of brands’ accountability does not erase the issue altogether. Industry insiders have begun to question whether Made in Italy is still a byword for “made responsibly” — a notion that appears increasingly difficult to defend.

As recently as last July, 11 new labels — including Chanel, Brunello Cucinelli, Etro, and Goyard, among others — came under scrutiny and were asked by Milan prosecutors to hand over documents on governance and supply chain controls as part of investigations into alleged exploitative working conditions at some of their subcontractors.

Another dozen brands — including Prada, Versace, Gucci, Dolce & Gabbana, Ferragamo, Missoni, Givenchy Italia, and Yves Saint Laurent Manifatture — became subject to similar preliminary investigations in late 2025.

These cases followed earlier probes involving marquee names such as Tod’s, Valentino, Loro Piana, Dior and Giorgio Armani, among others, which also faced scrutiny over their alleged negligence in properly auditing their supply chain partners.

All the brands in the latter cluster were put under judicial administration to correct and enhance audits and oversight through court-mandated procedures, with the exception of Tod’s, which obtained that the judicial administration procedure be handled by an Ancona, Italy, court, which has yet to rule.

Dior’s, Giorgio Armani’s, Loro Piana’s and Valentino’s probes have since been fully resolved, and the judicial oversight lifted.

Meanwhile, last March, Paul & Shark and Aspesi were also investigated for alleged negligence in auditing their suppliers, with prosecutors requesting they be placed under judicial administration. However, a Milan judge ruled against the prosecutors’ move, arguing the legal grounds for the requested measure were not met.

Fashion represents 5 percent of overall Italian industrial production, equaling automotive and outweighing pharmaceutical. The sector employs 1 million people when taking into account the entire supply chain. Each million units of fashion production is directly linked to about 19 jobs, five-fold the average quota needed by other key industries in the country, a new study on Made in Italy fashion developed by Camera della Moda with consultancy McKinsey & Company and IntelliSurvey found.

Its significant contribution to Italy’s overall growth and prosperity warrants protecting the reputation of Made in Italy and rethinking production practices to counter negative publicity with factual evidence.

“Consumers need to have a high level of trust in the brand. I no longer believe that Made in Italy alone makes the difference. We are addressing it ideologically, while I believe we should not defend it so much as enhance it. To do that, a brand needs authority in the eyes of the consumer,” Herno’s president and chief executive officer Claudio Marenzi told WWD earlier this summer.

Although sustainability has slipped down the list of fashion consumers’ priorities — with “Made in” credentials and ethical sourcing ranking relatively low among luxury goods purchase drivers, according to a recent Boston Consulting Group and Altagamma study — compliance and fair labor practices are increasingly important elements of brand equity, especially in light of the sector’s upward pricing strategies.

In recent years, debate has intensified on- and offline over the worthiness of luxury brands’ products. Investigations into supply chains have fueled consumer frustration over the gap between manufacturing costs and related retail prices — a discrepancy many have claimed is evidence of exploitative labor practices.

Camera della Moda has fiercely opposed the narrative being circulated that Made in Italy production lacks ethical controls.

“Too often, the story told about fashion obsesses on the shadows, on the issues, forgetting the value the sector generates for the country. Italian fashion is Italy,” Carlo Capasa, chairman of the Italian fashion governing body, said earlier this summer. “The true singularity of Italian fashion lies in the ecosystem it has built over time — a system the rest of the world envies.”

To this end, Camera della Moda’s “Il Bello della Moda” study, or “The Beauty of Fashion” in English, is intended as a permanent, real-time assessment of the state of Italian fashion, subject to ongoing updates via contributions from universities, research centers, including Open Impact, and Italian and international institutions. Camera della Moda and McKinsey & Company plan to publish periodic white papers centered on different fashion industry topics.

This article explores fragrance, aromatherapy, home fragrance, reed diffuser, scented candle, essential oil, perfume, natural fragrance, room scent, car fragrance, sharing the latest industry insights and offering practical references for enthusiasts.

Source: WWD Beauty - Fragrance (https://wwd.com/beauty-industry-news/fragrance/)

This article is reproduced from the original source for information sharing only. If it infringes any copyright, please contact us and we will remove it promptly.

© 2026 CeresMall | www.CeresMall.com