Italian Fashion Industry Implements New Transparency Measures

The Italian fashion industry is taking significant steps to enhance transparency in its supply chains. On October 15, 2023, major fashion trade associations, including Confindustria Moda, CNA Federmoda, Confartigianato Moda, the Camera Nazionale della Moda Italiana, and the Fondazione Altagamma, convened with the Ministry of Enterprises and Made in Italy (MIMIT) to discuss new measures aimed at improving traceability and compliance in the sector. This meeting precedes the upcoming “Fashion Table” scheduled for November 17, 2023.

The discussions followed the approval of a legislative package by the Italian Senate, which includes a new certification system designed to bolster traceability and adherence to labor laws. This initiative responds to consumer demand for greater transparency within the fashion supply chain. Small- and medium-sized enterprises, critical to Italy’s economy, rely heavily on the “Made in Italy” label to market their products, signifying quality craftsmanship and fair labor practices.

Recent investigations into the subcontracting practices of prominent Italian luxury brands have raised concerns about the integrity of the “Made in Italy” brand. In August, the Autorità Garante della Concorrenza e del Mercato (AGCM), Italy’s antitrust regulator, imposed a fine of €3.5 million (approximately $4 million) on the Giorgio Armani fashion group for unfair commercial practices. This occurred just a month before the death of the esteemed designer at the age of 91. The company has denied any wrongdoing and plans to appeal the ruling. Additionally, earlier this year, high-profile brands such as Valentino and Loro Piana came under investigation for alleged abusive practices within their supply chains.

In a joint statement, Confartigianato Moda and CNA Federmoda emphasized the need for decisive action from the government, warning that “recent investigations into iconic Made in Italy companies have revealed opaque practices and profound imbalances in the production chain.” They stressed that the credibility of the sector, largely composed of micro and small artisan businesses, is at stake. “Made in Italy is not a label; it is an entire value chain,” they declared.

During the meeting, Senator Adolfo D’Urso outlined the objectives of the newly approved measures. He stated that they are intended to “firmly defend Italian fashion, to protect its reputation and the values that have made it synonymous with beauty, quality, and authenticity.”

The new amendments introduce a voluntary supply chain certification and audit system, requiring companies that utilize subcontractors to embed legal clauses in their contracts. These clauses will mandate compliance with relevant regulations and the provision of evidence regarding employment and tax law adherence. Certification will remain valid for one year and must be renewed following an audit. MIMIT will maintain a public register of certified companies, which will enable them to market their products with the designation “filiera della moda certificata,” or “certified fashion supply chain.”

Companies that misuse this designation without having undergone the certification process will face penalties from the AGCM, with fines of up to €50,000 (around $58,000 at current exchange rates).

Through these measures, the Italian fashion industry aims to restore trust and ensure that artisan craftsmanship is recognized and valued in an era increasingly dominated by fast fashion.