Over the past two years, the Milan Public Prosecutor’s Office has launched a sweeping crackdown on the fashion supply chain, primarily using the tool of Judicial Administration.
This measure does not result in a criminal conviction for the company involved; rather, it serves as a preventive mechanism aimed at ‘cleaning up’ production chains affected by labour exploitation, known in Italy as ‘caporalato’ (illegal labour brokering). Originally developed to combat exploitation in agriculture, the instrument has since been extended well beyond that sector.
Below is a chronological overview of the main measures and key milestones (investigations are ongoing and no findings of guilt have been established at this stage).
1. Judicial administration measures
Judicial administration entails the appointment of a court-appointed commissioner who is responsible for monitoring and correcting a company’s relationships with its suppliers. The measure is typically lifted after several months.
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January 2024 – Alviero Martini S.p.A.
The first high-profile case. Prosecutors alleged a failure to oversee a subcontracting chain that relied on irregular Chinese-run workshops in the Milan area. -
April 2024 – Giorgio Armani Operations S.p.A.
The measure followed inspections into handbags and accessories produced in clandestine workshops, where workers were allegedly paid just a few euros per hour. (The measure was lifted in February 2025 once the company had brought its internal compliance protocols into line.) -
May 2024 – Valentino Bags Lab
Judicial administration was imposed on Valentino Bags Lab amid suspicions of facilitating illegal labour brokering in the production of bags. -
June 2024 – Manufactures Dior S.r.l.
The Italian manufacturing arm of the French luxury group, was implicated. Investigators pointed to poor working conditions at workshops belonging to external suppliers. -
July 2025 – Loro Piana
The measure targeted the cashmere supply chain amid allegations of inadequate prevention of labour exploitation throughout the procurement process. -
November–December 2025 – Tod’s
Judicial administration was imposed following inspections of footwear and leather goods suppliers. Among the measures reportedly considered was a temporary advertising blackout.
2. Expansion of the investigations (December 2025)
On 4 December 2025, the Milan Prosecutor’s Office reached a milestone by issuing document production orders to 13 major brands without immediate commissioners, in an effort to evaluate the ethical integrity of their supply chains.
These included:
Prada, Gucci, Dolce & Gabbana
Versace, Missoni, Ferragamo
Yves Saint Laurent, Givenchy, Alexander McQueen
Pinko, Coccinelle, Adidas Italy, Off-White
The stated goal is to achieve full transparency regarding sub-suppliers in order to prevent both ‘affordable luxury’ and high fashion from being produced under illegal conditions.
3. Institutional Milestones
Alongside individual enforcement actions, prosecutors have pushed for structural reform across the sector:
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26 May 2025 – Legality Protocol
The signing, at the Milan Prefecture, of a memorandum of understanding between prosecutors, the courts, the labour inspectorate and industry associations. The agreement sets out strict guidelines for monitoring subcontracting contracts in the fashion industry.
The pattern identified by prosecutors
According to Milan prosecutors, the contested mechanism follows a recurring pattern:
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Extreme outsourcing
Brands outsource production to intermediary companies, which in turn subcontract to small workshops — often, though not exclusively, Chinese-run. -
Exploitation
At the final stage of production, investigators have documented cases of workers living and working in the same facilities, shifts exceeding 14 hours a day, and systematic breaches of safety regulations. -
Negligent facilitation
While major brands are not accused of directly perpetrating abuses, they are alleged to have failed to exercise adequate oversight of suppliers, thereby indirectly benefiting from unlawfully reduced production costs.
