Italian luxury group Armani has received a 3.5 million euro fine from the Italian antitrust authority for allegedly deceptive commercial practices.

According to the Italian antitrust authority, the business is allegedly responsible for disseminating misleading ethical and social responsibility statements, contrary to the actual working conditions found at suppliers and subcontractors of parent company Giorgio Armani Spa and its subsidiary G.A. Operations Spa, where a significant part of the production of Armani-branded leather bags and accessories is undertaken.

Armani emphasises its commitment to sustainability, particularly social responsibility, as evidenced by statements in the companies’ code of ethics and documents published on the Armani Values website. However, investigative activity revealed that the business outsources part of its production to suppliers who, in turn, use subcontractors that operate in environments that risk workers’ health and safety.

The Armani Group announced in a statement that it will challenge the measure before the TAR (Tribunale Amministrativo Regional), initiated in July 2024 by the antitrust authority, “with the certainty that it has always operated with the utmost fairness and transparency towards consumers, the market, and stakeholders, as demonstrated by the group’s history.”

The sanction comes as a shock after Armani had successfully appealed for the early revocation of the judicial administration of G.A. Operations by the court, which recognised “the excellent result the company is deemed to have achieved, made possible in a specified time frame, precisely given that structured and proven supply chain control systems already existed at the time the measure was applied.”

Furthermore, Armani’s statement concludes, “Throughout the year-long investigation, Armani responded to all of the authority’s requests but was unable to establish a constructive relationship aimed at fully understanding the reasons for its position.”