Giorgio Armani fined 3.5m euros for unfair practices

MILAN, Aug 4 (Reuters): Italy's antitrust regulator on Friday fined fashion group Giorgio Armani and one of its units 3.5 million euros ($4 million) for alleged unfair commercial practices.
The Giorgio Armani group rejected the accusation and said it would appeal.
The regulator said in a statement that the two companies "issued misleading ethical and social responsibility statements in contrast with the actual working conditions found at suppliers and subcontractors".
It added that Armani outsourced most of its bag and leather accessory production to these third parties.
The authority said that although the group emphasized its attention to sustainability - using it as a marketing instrument - the external suppliers, in turn, subcontracted to other producers, which in some cases employed workers illegally and in poor health and safety conditions.
The issue already came up last year with Italian prosecutors, who placed one of Armani's units under judicial administration, a measure which was then lifted in February.