The Italian competitive authority (AGCM) has imposed a fine of 3.5 million euros against the companies Giorgio Armani Spa and GA Operations Spa due to unfair business practices. The company announced that it will appeal against the decision before the administrative court. Armani is certain, always with the greatest correctness and transparency towards consumers: inside, market and stakeholders: to have acted inside. This proves the history of the group.
Antitrust authority: ‘Companies gave untrue information about ethics and social responsibility’
The two companies are intended to spread misleading information on ethics and social responsibility, which contradicted the actual working conditions for suppliers: inside and subcontractors. These statements were found in the ethics code of the companies as well as in other documents published on the “Armani Values” website and on the company website “Armani”.
As the AGCM announced, the investigation showed that companies particularly highlighted their efforts to sustainability. In particular, they emphasized their social responsibility towards the employee: inside and their security. This became a marketing instrument in order to meet the increasing expectations of consumers: on the inside. The name of the website “Armani Values” underlines this orientation. Also some documents seized during the inspections show that the goal was to “increase the positive perception of the brand from the point of view of sustainability” and “persuade customers to conscious purchases, even with regard to the values conveyed by our products”.
At the same time, the companies are supposed to store a large part of their leather goods and accessory production to suppliers: in the inside, which in turn use subcontractors: inside. In several cases, it was found that safety devices on machines were removed from these subcontractors to increase the production capacity. This made the safety and health of the employees seriously at risk. In addition, the hygienic and sanitary conditions were inadequate, and the employees were often employed in full or in part. In this context, it is obvious that the respect of the rights and health of the employees: Inside did not match the ethical and social self -commitments published by Giorgio Armani Spa and GA Operations Spa.
The awareness of these serious violations of employee rights that occurred in the manufacture of Armani products should also have been proven by the fact that an employee was present at a judicial police inspection: inside of GA Operations. The latter was responsible for quality control and stated that it “has been going to this workshop a month for about six months”.
In an internal document by Giorgio Armani Spa from 2024, which was drawn up for judicial administration before the Milan public prosecutor’s office was initiated, even: “In the best case, the working conditions are just acceptable, in other cases there are severe doubts about their adequacy and health tolerance.”
‘Armani answered all inquiries from the authority’
Giorgio Armani Spa reacted with regret and astonishment to the decision of the competition authority. The procedure initiated in July 2024 due to presumably misleading advertising ended with a sanction against GA Operations Spa (GAO) and the parent company Giorgio Armani Spa, the AGCM’s decision does not take into account the decision of the Milan Court. The judicial administration of GAO had lifted this prematurely. The court recognized that the control and surveillance systems of the supply chain used by the Armani Group have long led to excellent results. This was possible ‘within a short time’ because at the time of the application of the measure, structured and tried and tested systems were already available to control the supply chain ‘.
Armani answered all inquiries from the authority during the one -year investigation. However, there was no way to build a constructive relationship in order to explain the reasons for your own position comprehensively. The decision would therefore be challenged before the administrative court. Armani is certain that he has always acted with the greatest correctness and transparency towards consumers: inside, market and stakeholders. This proves the history of the group.
This article was used with digital tools translated.
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