Labour Exploitation
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Italian prosecutors seek judicial administration for Tod’s over labour claims
Yahoo Finance· 2025-10-09 09:19
Core Viewpoint - Italian prosecutors have requested judicial administration for Tod's due to allegations of labor exploitation in its supply chain, marking it as the sixth luxury brand in Italy to face such scrutiny in 2024 [1][4]. Group 1: Legal Proceedings - A hearing is scheduled for 19 November 2025 to address a jurisdictional dispute between Milan prosecutors and an appeals court in the Marche region, where Tod's is headquartered [2]. - The Milan appeals court found the prosecutors' request for administration to be justified but determined that the jurisdiction lies with the Marche region [4]. Group 2: Company Response - Tod's has stated that it complies with current legislation, including labor laws, and conducts regular checks on its selected workshops [2][3]. - The company emphasized that workshops must sign agreements to ensure quality work environments and compliance with labor contracts [3]. Group 3: Allegations and Investigations - Prosecutors allege that Tod's "culpably failed" to adequately oversee its suppliers in pursuit of higher profits, although the company itself is not under criminal investigation [3]. - Recent investigations have revealed widespread exploitation within the fashion and luxury supply chains in Italy [4]. Group 4: Government and Industry Response - The Italian government has proposed a bill for legal certification of fashion companies, allowing brands to obtain third-party certification for supply chain compliance [5]. - Previous judicial administrations have been imposed on other high-end firms, including Loro Piana and units linked to Valentino, Dior, and Armani, with some measures later lifted after compliance [6].