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Gucci, Prada, Versace face Italy probe over alleged Chinese labour exploitation

Milan prosecutors investigate 13 luxury brands for alleged exploitation of Chinese workers amid subcontracting abuses and poor labor conditions in Italy's fashion supply chain.

  • On Dec 4, Milan prosecutor Paolo Storari issued documents drawing 13 luxury brands, including Gucci, Prada, Versace and Yves Saint Laurent Manifatture, into a probe with Carabinieri labour unit searches seeking governance and supply‑chain records.
  • Prosecutors say the expansion stems from entrenched subcontracting chains, with Milan prosecutors citing near-ubiquitous subcontracting from first-tier to second-tier suppliers and requesting internal governance and audit functions to assess compliance.
  • Investigators found luxury bags, wallets and subcontracting documents during searches of Chinese‑owned workshops in Italy, identifying between 3 and 19 workers per supplier, mostly Chinese with some Pakistani, and reported safety breaches and wage violations.
  • Five fashion groups have been placed under court administration since 2024, while prosecutors say they may take further preventive measures if deficiencies persist among the 13 companies allowed to address issues after handing over documents.
  • Advocates warned that exploitation is a structural phenomenon driven by brands' commercial pressures and low prices imposed on contractors, prompting Urso's legal certification proposal to protect Italy's fashion supply chain.
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102 Articles

Lean Left

Gucci, Versace or Yves Saint Laurent are in the sight of a Milan prosecutor for having made bags, wallets and clothes in workshops exploiting "Chinese labour".

·Paris, France
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Lean Left

The Italian police are investigating whether luxury brands benefit from the exploitation of cheap labour. 13 companies now have to disclose their documents.

·Germany
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Barron's broke the news in New York, United States on Wednesday, December 3, 2025.
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