Italy is turning up the regulatory heat on the fashion industry – from storied luxury houses to global fast fashion behemoths – as part of a broader clampdown on deceptive environmental, social, and governance claims and exploitative labor practices. The latest high-profile targets? Giorgio Armani and Shein, two brands now facing regulatory penalties that signal a growing intolerance for greenwashing and labor abuses within one of the world’s key fashion capitals.
On August 1, Italy’s antitrust authority (“AGCM”) fined the Giorgio Armani group and one of its subsidiaries €3.5 million ($4 million) for alleged unfair commercial practices, accusing Armani of making misleading claims about its ethical and sustainability commitments, which did not align with conditions found at some suppliers. Much of Armani’s leather accessory production is outsourced, and AGCM found that certain subcontractors employed workers illegally and failed to meet basic health and safety standards. These findings echo a prior investigation by prosecutors, which briefly placed one Armani unit under judicial supervision – a measure later lifted.
Armani strongly rejected the decision, calling it “disappointing and bitter,” and said it would appeal. The group maintains it has always acted with fairness and transparency toward consumers and the market.
This follows a similar probe into Dior, which avoided penalties by agreeing to remedies earlier this year.
Shein Sanctioned for Greenwashing
At the same time, AGCM has imposed a €1 million ($1.16 million) fine on Shein for misleading marketing on its environmental practices. The sanction, which was announced on August 4, targets Infinite Styles Services Co. Limited, which runs Shein’s European website.
The investigation focused on Shein’s “evoluSHEIN by design” collection, promoted as eco-friendly and recyclable. According to AGCM, these claims were exaggerated, vague, or false. The actual fiber content and lack of effective recycling systems contradicted Shein’s marketing. AGCM also challenged Shein’s broader climate pledges, such as cutting emissions 25% by 2030, as vague and unsubstantiated – especially given the company’s rising emissions in recent years. The authority noted that Shein, due to its super-fast fashion model, has a higher duty of care when making environmental claims.
A Shein-affiliated entity was fined €40 million by French regulators in July for allegedly publicizing fake discounts and deceptive green claims.
THE BOTTOM LINE: These cases reflect a growing push in Italy to hold fashion brands accountable for ESG misrepresentation. Other luxury players, including Loro Piana and Valentino, have faced scrutiny for labor violations in their supply chains. Italy’s regulators are making it clear that sustainability must go beyond branding. Whether luxury heritage houses or digital disruptors, companies are being warned: if your claims mislead consumers – expect to pay the price.
