Italy’s Competition and Market Authority (AGCM) has imposed fines totaling €3.5 million on Giorgio Armani Spa and Ga Operations Spa for deceptive commercial practices. The regulator found the companies disseminated “untruthful ethical and social responsibility statements presented in a manner that was unclear, non-specific, inaccurate, and ambiguous.”
Specifically, the AGCM stated that Armani’s public ethical commitments starkly contradicted the actual working conditions uncovered at suppliers and subcontractors responsible for a large portion of Armani-branded leather goods production. These misleading claims appeared in the companies’ Code of Ethics, on the Armani Values website (www.armanivalues.com), and on the main Armani site (www.Armani.com), which links to Armani Values.
The investigation revealed that the companies heavily emphasized their commitment to sustainability – particularly social responsibility towards workers and safety – as a marketing tool to meet rising consumer expectations. Evidence, including the very name “Armani Values” and internal documents seized during inspections, demonstrated a clear strategy to “increase the brand’s positive perception regarding sustainability… and commercially… lead the customer to make purchases conscious of the ‘values’ conveyed through our products.”
Conversely, Armani outsourced most leather goods production to suppliers who further subcontracted work. At these subcontractors, safety devices were frequently removed from machinery to boost output, severely endangering worker health and safety. Hygienic conditions were inadequate, and workers were often employed wholly or partially off the books (“in nero”).
The AGCM concluded that the actual respect for worker rights and safety did not match the ethical and social responsibility claims made by the companies. Awareness of these severe labor violations was evidenced by the presence of a Ga Operations quality control employee during a police inspection; the employee admitted to visiting one problematic subcontractor monthly for about six months.
Furthermore, a damning internal Giorgio Armani document from 2024, predating legal proceedings requested by Milan prosecutors, stated that even in the best cases observed, “the work environment is borderline acceptable, in other cases, serious doubts arise about their adequacy and healthiness.”