The Italian Competition Authority (AGCM) has issued a €3.5 million ($4.06 million) fine against Giorgio Armani SpA and GA Operations SpA for unfair commercial practices. The fine follows a comprehensive investigation into the fashion giant's misleading claims about its sustainability and social responsibility. The violations took place between April 22, 2022, and February 18, 2025.

According to the AGCM, these companies made ‘untruthful, unclear, and equivocal statements’ in their public communications, including their code of ethics and corporate websites like Armani Values. These platforms were used to promote the brand's ethical and social commitments, influencing consumer purchasing decisions by presenting a false image of a responsible brand.

However, investigators uncovered a significant gap between these public claims and the reality of the company's supply chain. They found a stark contrast in the working conditions at suppliers and subcontractors responsible for producing most of Armani's branded leather bags and accessories.

Reports indicated that subcontractors often removed safety devices from machinery to increase production, putting workers' health and safety at risk. Conditions were also found to be unsanitary, and some employees were working illegally.

The AGCM noted, these issues were not unknown to the Armani companies. During an inspection, a GA Operations quality control employee admitted to visiting one of these subcontractors monthly. Furthermore, an internal document from Giorgio Armani SpA dated 2024 stated, in the best of the situations observed, the working environment is at the limit of acceptability; in other cases, there are serious concerns regarding its adequacy and health standards.’ This internal admission, made before judicial proceedings began, highlights the company's awareness of the poor conditions.