Italian Craftsmanship Under Fire: Tod’s Probed for Alleged Labor Violations

Tod’s, under the spotlight. The Milan Public Prosecutor’s Office has placed the luxury group and three of its executives under investigation for alleged labor abuses in its supply chain, according to Reuters. The public prosecutor’s office is also requesting an unprecedented measure in the sector with a temporary ban on part of the Italian company’s advertising.

This is the first time that an Italian fashion house and members of its top management have been directly investigated for alleged labor exploitation. Until now, the prosecutors’ investigations had focused on workshops owned by Chinese businessmen working for high-end firms, and five companies had been judicially intervened, but without initiating criminal proceedings against them.

According to sources quoted by Reuters, the investigators claim that Tod’s was “fully aware” of and “complicit” in the sweatshop conditions in subcontracted workshops. Prosecutors allege that, for several years, third-party audits warned of irregularities, but that these warnings were ignored by the company.

As a provisional punitive measure, the Prosecutor’s Office has asked the judge to impose a six-month ban on the advertising of the luxury products manufactured in the workshops under investigation. For the moment, it is not known what percentage of the company’s references come from these production areas.

Tod’s faces prosecutor’s request involving a six-month advertising ban

The judge has set a hearing for December 3rd, at which company representatives will be able to submit written pleadings or respond to questions from the court. Tod’s has not made any public statements and, so far, has not responded to requests for comment from the international agency.

This investigation is a leap from the proceedings opened last month, when prosecutors had already requested a judicial intervention in Tod’s, in line with measures previously applied to other firms. After learning of this first move, the company’s founder, Diego Della Valle, defended the group’s actions and warned that the wave of investigations could “erode the reputation of made in Italy”.

According to the latest published data, Tod’s Group closed the first quarter of last year with a 6.7% drop in sales, to €252.3 million.