CONSUMER LAW | Dior commits to ethical and social responsibility compliance after AGCM investigation

On 13 May 2025, the Italian Competition Authority (AGCM) issued Decision No. 31548 against the companies Christian Dior Couture S.A., Christian Dior Italia S.r.l., and Manufactures Dior S.r.l. (collectively, Dior), the well-known brand active in the luxury fashion industry, for allegedly engaging in unfair commercial practices by making misleading statements regarding their ethical and social responsibility standards. According to the AGCM’s preliminary findings, Dior had directly or indirectly outsourced the production of certain leather goods to workshops employing workers under exploitative conditions, including inadequate wages, excessive working hours, and insufficient health and safety protections, in stark contrast with their publicly stated ethical commitments. Pursuant to Article 27.7 of Legislative Decree No. 206 of 6 September 2005 and subsequent modification (the Italian Consumer Code), Dior presented a set of commitments that were deemed adequate by AGCM to eliminate the potentially misleading nature of the investigated commercial practices. Notably, Dior agreed to revise the “Dior Sustainability” section of its website to ensure that all statements relating to environmental responsibility and social ethics are accurate, specific, and adequately substantiated. The company further committed to improving monitoring of working conditions throughout its supply chain, by strengthening inspections and audits of suppliers. Over the next five years, euro 2 million will be allocated by Dior in initiatives aimed at identifying and supporting victims of labor exploitation in Italy, including the development of training, protection, and social reintegration programmes. Furthermore, Dior has committed to establishing a new independent compliance function, tasked with monitoring adherence to corporate codes of conduct and relevant regulations. Internal marketing and communication staff will receive targeted training on consumer protection law, while suppliers will benefit from specific instructions on labor rights and ethical compliance.

Consequently, the case was closed by AGCM without a formal finding of infringement and the imposition of fines.

Newsletter n. 108- June 2025