On 1 August 2025, Italy’s Competition Authority (AGCM) fined Giorgio Armani S.p.A. and its subsidiary Giorgio Armani Operations €3.5 million for unfair commercial practices under the Consumer Code. The full ruling is publicly available in Italian.
The investigation covered the period from April 2022 to February 2025 and focused on Armani’s Code of Ethics and Supplier Code of Conduct, statements published on Armani.com and ArmaniValues.com. It also cites the Modern Slavery Statement and the group’s sustainability report, although these were not the primary focus.
The AGCM decision was based on evidence from the legal case brought against the group in April 2024 for labour exploitation in unauthorised subcontracted factories producing Armani handbags. Armani’s knowledge of these conditions was a key factor in the AGCM decision. The AGCM cited evidence from the legal case, “The results of an audit conducted at the company … in 2023 state: ‘the hemming phase is completely outsourced to foreign companies… and Chinese work groups, posing serious risks of potential critical issues.”
As part of its defence, the Armani Group argued that they had taken a risk-based approach and that it was not feasible for them to ensure conditions in 100% of supplying facilities. However, the authorities stated that this was not a sufficient defence given the severity of the issues found – even if only found in a limited number of facilities. Armani group also argued that consumers do not base their purchasing decisions on sustainability concerns. However, the AGCM cited a consumer survey conducted by Armani, which showed that consumers were aware of the company’s Code of Conduct.
Additional context
On 4 August 2025, AGCM also fined Shein €1 million for unfair commercial practices, citing environmental claims that were found to be vague, generic, misleading, or unsubstantiated. The findings are based on statements made across Shein’s website, including in relation to products claimed to be environmentally sustainable, but which were not made from preferred fibres and which could not be recycled in existing textile systems despite claims and an increase in emissions by 82% in 2023 and 2024 despite emission reduction targets.