Dior cleared but under pressure: luxury faces up to its responsibilities

The world of luxury goods is no longer exempt from transparency. Accused by the Italian authorities of exploitation via its subcontractors, Dior has been cleared… but not without consequences.

A high-voltage investigation behind the scenes of ultra-luxury

It all began in July 2024, when theItalian Competition Authority (AGCM ) opened an investigation into cases oflabor exploitation in workshops linked to Dior. Outrageous conditions, illegal wages, undocumented workers: the accusations are a stain on the meticulous world of luxury.

On Wednesday, the decision was announced: the LVMH group company was not found to have committed a direct offence, but it was found to be indirectly responsible. As a result, Dior will pay 2 million euros over five years to support the victims, while revising its supplier selection and control procedures.

A strategic response in a climate of mistrust

In its press release, the house says it is “pleased” with this conclusion, which it describes as “positive”, insisting on its historic commitment to ethics and excellence. But the case highlights a broader truth: luxury is no longer judged solely on its aesthetics, but also on its social practices.

Dior is not alone: luxury under scrutiny

This case is part of a series of controls targeting the giants of the sector. Giorgio Armani is the subject of a similar investigation. And Kering, owner of Gucci, has responded proactively by auditing 4,550 suppliers in 2024, covering 70% of its chain.

A way of setting an example, but also of protecting oneself. Because in a globalized, media-driven market, a brand’s image can crack as quickly as a tweet goes viral.

Things to remember

Dior escaped conviction, but made a clear commitment to reinforce its vigilance throughout its supply chain. A long-awaited, indeed necessary, gesture for a sector where luxury now rhymes with responsibility.

Read also: Dior deploys its luxury logistics (and that changes everything…).