This article is co-authored by and Samiksha Shah, Fourth Year, B.A. LL.B. (Hons.), Adv. Balasaheb Apte College of Law, University of Mumbai and Sankalp Mirani, Final Year, B.A. LL.B. (Hons.), Maharashtra National Law University, Mumbai.

A sweeping government crackdown in Italy is putting the nation’s celebrated fashion sector on notice, demanding an end to deceptive environmental claims and exploitative labor practices. This comprehensive initiative by bodies like the Italian Competition Authority (AGCM) targets both luxury powerhouses and fast-fashion giants, signaling a new era of accountability in one of the world’s premier fashion capitals. Brands finding themselves in the authorities’ crosshairs are facing penalties and strict oversight, making it clear that the time for superficial sustainability is over.

The industry was jolted when the AGCM imposed a fine of €3.5 million on the Giorgio Armani group for unfair commercial practices in August 2025. The luxury brand was accused of promoting misleading ethical and sustainability narratives that starkly contrasted with the conditions investigators discovered at its suppliers’ facilities. Much of Armani’s leather goods production is outsourced, and according to investigators, subcontractors were employing undocumented workers and failing to adhere to fundamental health and safety standards.

Armani has vehemently opposed the ruling, describing it as “disappointing and bitter,” and has pledged to appeal, citing its history of acting with integrity. This development follows a similar probe into LVMH-owned Christian Dior. Unlike Armani, Dior avoided a finding of infringement by accepting commitments in May 2025; the brand pledged to pay €2 million over five years to support supply chain workers and agreed to implement new supplier protocols.

The Pervasive Issue of Greenwashing

The recent regulatory actions highlight a pervasive and insidious issue within the fashion industry: greenwashing. This is the practice of deliberately misleading consumers by exaggerating the environmental and ethical credentials of products. Common tactics include:

• Vague and Unsubstantiated Claims: Brands often use ambiguous terms like “eco-friendly,” “sustainable,” or “conscious” without providing clear definitions or data. For instance, H&M has faced scrutiny over its “Conscious” collection. A 2021 report from the Changing Markets Foundation found that 96% of H&M’s environmental claims were misleading. The brand marketed these items as sustainable choices, yet the report noted that the line sometimes contained a higher percentage of damaging synthetic materials than its main collection.
• Misleading Imagery: Companies frequently use nature-centric imagery, green landscapes and earthy aesthetics, to create an eco-friendly facade not reflected in actual operations. A prominent example includes campaigns by activewear brands using images of natural habitats to portray themselves as environmentally responsible, while production procedures continue to cause significant environmental harm.

Fast-fashion giant Shein was also penalized €1 million by the AGCM for greenwashing. Its “evoluSHEIN by design” collection was marketed as being made with recycled and eco-friendly materials. However, the authority deemed these claims to be unsubstantiated, pointing to discrepancies in the actual fiber content and the lack of a proper recycling system for the garments. Looking ahead, the EU Green Claims Directive, set to be implemented by July 2026, will further tighten these regulations, requiring all environmental claims to be substantiated by recognized scientific evidence.

A Wider Crackdown on Labor Exploitation

“A Wider Crackdown on Labor Exploitation” is a crucial and distinct subtopic. The Italian authorities’ investigation extends beyond environmental claims and strikes at the heart of the “Made in Italy” promise. These inquiries have revealed that some brands, in their pursuit of higher profits, have allegedly “culpably failed” to adequately supervise their suppliers, thereby enabling the exploitation of workers.

Investigations into Dior’s supply chain exposed outsourcing to workshops where workers reportedly faced poor compensation, excessive hours, and unsafe conditions, directly contradicting the brand’s public commitments to ethical standards. In response, Dior has committed to increasing supply chain transparency and enhancing its supplier auditing processes.

Similar issues were found in the supply chains of Loro Piana and Valentino. In July 2025, the Tribunal of Milan placed Loro Piana under judicial administration after finding the company had subcontracted production to workshops where workers were allegedly mistreated. In the case of Valentino, a similar order was issued in May 2025, where a handbag production division was placed under court-appointed administration due to subcontracting to firms that subjected employees to exploitative working conditions.

How Consumers Can Influence Sustainable Fashion?

The actions taken by Italian regulators underscore the critical importance of consumer awareness and the power of collective demand for genuine sustainability. As a consumer, you have the ability to support brands that are truly committed to ethical and environmentally sound practices. This responsibility involves moving beyond passive consumption to making active, informed choices.

The growing ethical fashion movement is a direct response to the harmful practices of fast fashion, encouraging shoppers to consider the impact of their purchases on people and the planet. This has fueled the rise of “conscious consumerism,” a movement where purchasing decisions are based on the social, environmental, and ethical lifecycle of a garment.

Here is how you can expand your influence:

• Check for Third-Party Certifications: Look for credible, independently verified certifications like GOTS (Global Organic Textile Standard), OEKO-TEX, and B Corp status, which provide unbiased validation of a brand’s claims.
• Demand Transparency: Support brands that are open about their supply chains. Their websites should provide clear information on where and how their products are made.
• Be Cautious with Vague Words: Question terms like “eco-friendly” and “green” when they are not supported by specific details and evidence.
• Embrace Slow Fashion: Slow fashion is a shift from mindless quantity to meaningful quality. By investing in timeless, well-made pieces, you reduce the need for frequent purchases and reject the trend-driven cycle of fast fashion.
• Participate in the Circular Economy: Real-world movements are already changing consumption patterns. The rise of second-hand platforms like Depop and ThredUp, and clothing rental services like Rent the Runway, extends the lifecycle of garments and reduces waste. This circular fashion model is integral to a more sustainable future.
• Repair and Repurpose: Instead of discarding damaged clothing, give it a new life through repair or creative repurposing.
• Use Your Voice: Engage with brands on social media and ask direct questions about their practices. Celebrities and influencers are also playing a role by proudly re-wearing outfits, helping to break the taboo around outfit repeating and shifting social norms away from disposability.

Conclusion: A Turning Point for Fashion

The recent wave of fines and investigations in Italy marks a decisive turning point for the global fashion industry. The era of unchecked greenwashing and hidden labor abuses is drawing to a close. The actions taken by Italian regulators send a powerful message: sustainability must be a real, verifiable commitment, not just a marketing buzzword.

This crackdown reveals a system where the prestigious “Made in Italy” label has, in some cases, masked a dark reality of exploitation. By holding powerful brands accountable, authorities are triggering a reckoning that could reshape the industry from the inside out.

For consumers, this is a mandate to demand real transparency and support genuinely ethical brands. The future of fashion will belong only to brands that practice sustainability with uncompromising integrity.