By Mauro Orru


Italy's competition watchdog launched an investigation into Giorgio Armani and Christian Dior, saying the luxury-goods companies might have resorted to illegal labor practices to produce and sell their high-priced goods.

The Italian Competition Authority, or AGCM, said the companies might have relied on supplies from workshops where laborers receive inadequate wages and work overtime in poor health and safety conditions, while emphasizing the craftsmanship of their goods to promote and sell them to customers.

"The companies involved are fully committed to co-operate with the authorities, believe that the allegations have no merit and are confident of a positive result following the investigation," a spokesperson for Armani Group said.

LVMH Moet Hennessy Louis Vuitton, which owns Dior, didn't immediately respond to requests for comment.

The probe comes weeks after an investigation by Milan prosecutors found workshops making handbags and other leather goods for Armani and Dior used exploited foreign labor to produce the high-end products at a fraction of their retail price.

The AGCM said antitrust officials had conducted inspections at Armani and Dior premises on Tuesday.


Write to Mauro Orru at mauro.orru@wsj.com


(END) Dow Jones Newswires

07-17-24 0726ET