Prada Ends Contracts with Hundreds of Italian Suppliers Following Labor Violation Findings
Amid a judicial investigation in Italy over alleged labor abuses in the luxury sector, the Italian group has severed connections with 222 workshops since 2020 after implementing a stringent “zero tolerance” audit of its supply chain.
Purge in Prada's supply chain: 222 fewer workshops in the last five years.
Purge in Prada’s supply chain. The Italian group has severed relations with more than 200 suppliers over the past five years after detecting labor breaches in its supply chain in Italy. According to the Financial Times, the company has implemented a “zero tolerance” policy in the wake of increased scrutiny of the luxury sector in Italy.
Since 2020, the Milan-based group has conducted more than 850 face-to-face inspections of suppliers and subcontractors in northern and central Italy. More than a quarter of these audits resulted in the termination of contracts, with up to a total of 222 suppliers excluded.
Among the most serious infractions detected were the existence of dormitories inside factories, where workers slept on the premises. However, the Financial Times points out that other breaches, such as deficiencies in occupational safety or waste management, were more common.
Prada currently works with around 1,000 suppliers and subcontractors registered in Italy. In the last fiscal year alone, the company carried out 188 inspections, which resulted in 43 contract terminations, six of them for unauthorized subcontracting to workshops with irregular conditions.
In the 2025 financial year, Prada carried out 188 inspections, of which 43 resulted in the termination of contracts with suppliers
The rate of cancellations has been decreasing since the beginning of the process. In 2020, more than half of the inspections ended in contract terminations. “The rate of terminations has gone down because we adopted a zero-tolerance approach,“ the company explained to the British newspaper.
Prada’s action comes in parallel with the Milan prosecutor’s office investigation into alleged labor abuses in the Italian luxury supply chain. Although the group is not under investigation, prosecutors in December requested information on its suppliers, in a context of growing pressure on the made in Italy label.
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