Armani fined 3.5 million euros by CMA for unfair practices

The Competition and Markets Authority (CMA) has fined Giorgio Armani Spa and G.A Operations Spa 3.5 million euros for allegedly misleading consumers with false claims of ethical and social responsibility. The CMA's investigation found that the companies' marketing, which emphasised their commitment to sustainability and worker well-being, contradicted the actual working conditions at their suppliers.

According to a CMA statement, the companies' ethical claims were present in their Code of Ethics and on their websites, including "Armani Values." The authority found that these claims were used as a marketing tool to boost the brand's image and appeal to consumers who prioritise sustainability. However, the investigation revealed that a significant portion of Armani's leather bags and accessories production was outsourced to subcontractors with unsafe and unsanitary conditions.

CMA accuses Armani of unfair practices

The CMA detailed several concerning findings at these subcontractors, including the removal of safety devices from machinery to increase production, which put workers' health and safety at risk. The investigation also found evidence of inadequate hygiene and sanitary conditions, as well as the employment of undeclared workers.

The CMA stated that these findings directly contradict the ethical and social responsibility claims made by the company. An internal Armani document from 2024 even described the working environments at some suppliers as "borderline acceptable."

Armani responds to CMA allegations

In response to the penalty, Giorgio Armani Spa released a statement expressing "bitterness and astonishment" at the CMA's decision. The company announced its intention to appeal the ruling to the Administrative Court.

Armani emphasised that it is confident it has always operated with "the utmost propriety and transparency" and cited a recent decision by the Court of Milan that had previously revoked a judicial administration of G.A Operations Spa.

According to Armani, this decision acknowledged that the company already had "structured and tested supply chain control systems" in place. The company also claimed that it had not been given the opportunity to establish a constructive dialogue with the CMA during the investigation.