Italy fines Armani for 'misleading ethical' statements

Rome: Italy s competition watchdog said Friday it fined luxury goods giant Giorgio Armani 3.5 million euros ($4 million) for misleading consumers over...

Rome: Italy's competition watchdog said Friday it fined luxury goods giant Giorgio Armani 3.5 million euros ($4 million) for misleading consumers over dangerous conditions for workers making its bags and accessories.

The watchdog sanctioned the Milan-based fashion group for "misleading ethical and social responsibility statements that were at odds with the actual working conditions found at suppliers and subcontractors".

"The companies made untruthful ethical and social responsibility statements that were not presented in a clear, specific, accurate, and unambiguous manner," it added in a statement.

It said Armani outsourced a "large part" of its leather bag and accessory production to suppliers who relied on subcontractors.

The watchdog cited cases in which "safety devices had been removed from the machinery to increase production capacity, thereby posing a serious risk to the safety and health of workers."