Italy prosecutor to probe Tod’s on alleged supply chain issues
Yahoo Finance·2025-10-09 11:58

Core Insights - Tod's is facing allegations of facilitating labor exploitation through inadequate oversight of subcontractors, linking luxury brands to unethical practices in Chinese workshops [1] - Italy's industry minister is considering a certification scheme to address supply chain issues in the luxury sector, following incidents of worker exploitation involving brands like LVMH's Loro Piana [2][3] - The reputation of 'Made in Italy' is being tarnished by unlawful practices in the fashion supply chain, prompting legal scrutiny of companies like Tod's [3] Group 1 - Tod's has been accused of failing to control subcontractors, leading to exploitation issues [1] - Police inspections revealed a connection between luxury brands and cost-cutting practices that violate labor laws [1] - The Italian government is taking steps to improve oversight in the luxury fashion industry to prevent further exploitation [2][3] Group 2 - The introduction of a certification scheme is being considered to enhance accountability in the luxury supply chain [2] - Loro Piana is the fifth luxury brand to face court administration in Italy due to similar allegations, indicating a growing trend of legal actions in the sector [2] - The image of 'Made in Italy' is at risk due to the actions of a few unlawful businesses within the fashion supply chain [3]