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Gucci, Prada, Versace face Italy probe over alleged Chinese labour exploitation

The alleged sweatshop labour practices, spark a nationwide investigation into ‘Made in Italy’ ethics and supply chain transparency

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A Versace store in New York City. Photo: Reuters

Italian prosecutors on Thursday named Gucci, Prada, Versace and Yves Saint Laurent as among 13 luxury brands suspected of using subcontractors who exploited migrant workers in Italy, as part of a growing investigation into sweatshop conditions.

Milan prosecutor Paolo Storari issued requests for information about alleged abuses by the brands, although they are not yet under formal investigation.

It is the biggest expansion to date of a probe launched last year into the luxury sector, which has exposed wage and working hour violations, safety breaches and substandard housing for staff.

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“As part of the investigations … there have been reports of Chinese workers being employed in conditions of severe exploitation,” Storari wrote to the brands in documents made public on Thursday.

The document reveals that luxury bags, wallets and clothing were found during searches of Italian workshops employing Chinese and Pakistani workers under exploitative conditions.

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It requests information including internal governance documents and audit information related to the brands’ supply chains.

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