Italian police conducted raids on several luxury brands, including Bulgari and Chanel, over allegations that they used subcontractors who employed Chinese workers under exploitative conditions. This action is part of a broader investigation by Milan prosecutors that has previously uncovered alleged labor exploitation in the supply chains of other luxury brands such as Prada, Givenchy, and Dolce & Gabbana.
At the core of the issue is the common practice of luxury brands subcontracting work to suppliers, who then contract to others, ultimately leading to firms using Chinese workers in exploitative situations. Authorities recently visited the offices of nine luxury companies, including Brunello Cucinelli, Moncler, Chanel, Bulgari, Jacob Cohen Company Spa, Etro, Stefano Ricci, and Goyard Italie, to demand documents related to their governance and supply-chain controls. Police found products and documentation at two Chinese-owned workshops, which were accused of exploiting undocumented Chinese workers and supplied items like garment bags and pouches to some of these brands.
None of the nine companies involved in this latest wave of raids are currently under investigation, nor have prosecutors sought court-appointed administration for them, according to judicial documents. Brunello Cucinelli expressed surprise and sadness that packaging materials were found at an unsuitable workplace despite their supplier checks, pledging cooperation. This operation follows a similar move in December 2025, where the Carabinieri labor unit in Milan conducted raids at 13 other luxury brands over the same issues, with some, like Loro Piana, having previously been placed under temporary judicial administration.
Italy's judiciary has been actively exposing widespread exploitation in the fashion and luxury supply chain. The government has also considered measures to protect the 'Made in Italy' label, with Industry Minister Adolfo Urso previously stating the reputation of Italian brands was "under attack." A proposed law aims to introduce legal certification for fashion companies to attest to supply chain compliance, given that Italy accounts for an estimated 50-55% of global luxury goods production.
