Key Facts
• Italian luxury brand supply chains exploit immigrant workers in poor conditions.
• Judicial authorities have taken five actions against brands in recent years.
• In July 2025, Milan court placed Loro Piana under one-year judicial supervision.
• Loro Piana, owned by LVMH, failed to monitor labor conditions in subcontractors.
• Subcontractors outsourced work to firms exploiting Chinese workers with low wages.
• Workers faced long hours, including nights and holidays, in substandard housing.
• Italy’s small businesses produce nearly 50% of global luxury goods.
Summary
Italian authorities are intensifying efforts to address labor exploitation in the luxury goods industry. Investigations revealed that subcontractors for brands like Loro Piana, owned by LVMH, subjected immigrant workers to long hours, poor living conditions, and wages far below standard. In July 2025, a Milan court placed Loro Piana under judicial supervision for failing to oversee labor practices. Italy, a hub for luxury goods production, relies on thousands of small businesses, which collectively account for nearly half of global output. Authorities aim to ensure ethical practices in this critical sector.
