Overview

• The court determined Loro Piana neglected to verify real working conditions in its multi-tiered supply chain, where irregular Chinese laborers faced unpaid wages, excessive hours and substandard housing.
• Under the July 14 decree, two workshops have been suspended, four owners and seven undocumented workers have been referred to criminal proceedings, and penalties exceed €181,000 in fines plus €60,000 in administrative sanctions.
• Italy’s Carabinieri labor defense unit executed the administration judiciaire order to forestall further exploitation in the production of Loro Piana’s cashmere garments.
• Loro Piana says it severed ties with the implicated supplier within 24 hours of being notified on May 20 and reiterates its commitment to human rights protections.
• This action follows a May ruling by Italy’s Competition Authority that required fellow LVMH brand Dior to provide €2 million in aid to exploitation victims despite finding no formal infringement.