Italian Fashion Industry Implements New Certification for Transparency

The Italian fashion industry is taking significant steps to enhance transparency and compliance within its supply chains. On October 15, 2023, leading fashion trade associations convened with officials from the Ministry of Enterprises and Made in Italy (MIMIT) to discuss new measures aimed at increasing traceability and adherence to labor laws. This initiative follows the recent approval of a package of fashion-related amendments by the Italian Senate.

Representatives from organizations such as Confindustria Moda, CNA Federmoda, Confartigianato Moda, the Camera Nazionale della Moda Italiana, and the Fondazione Altagamma were present at the meeting. The next gathering, known as the “Fashion Table,” is scheduled for November 17, 2023.

The newly approved measures introduce a voluntary certification system designed to bolster compliance with labor regulations. This initiative responds to increasing consumer demand for transparency in the supply chain, which many see as a vital selling point. For small- and medium-sized enterprises, the “Made in Italy” label is a crucial marketing asset, embodying quality, craftsmanship, and fair labor practices under Italian law.

Recent investigations into the subcontracting practices of several high-profile Italian luxury brands have raised concerns about the integrity of the “Made in Italy” brand. In August 2023, the Autorità Garante della Concorrenza e del Mercato (AGCM) imposed a fine of €3.5 million (approximately $4 million) on the Giorgio Armani fashion group for unfair commercial practices. The company has denied any wrongdoing and plans to appeal the decision.

In addition, earlier this year, both Valentino and Loro Piana were reported to be under investigation for abusive practices within their supply chains. In a joint statement, Confartigianato Moda and CNA Federmoda called on the Italian government to take decisive action, asserting that “recent investigations into iconic Made in Italy companies have revealed opaque practices and profound imbalances in the production chain.” They emphasized that the credibility of the sector, predominantly comprised of micro and small artisan businesses, is at stake.

In response to these challenges, Senator Adolfo D’Urso emphasized the importance of the new legal measures, stating their intent to “firmly defend Italian fashion, to protect its reputation and the values that have made it synonymous with beauty, quality, and authenticity.”

The amendments mandate that companies utilizing subcontractors must include legal clauses in contracts to ensure compliance with applicable regulations, including evidence of adherence to employment and tax laws. The certification will be valid for one year and subject to renewal based on subsequent audits.

To further ensure accountability, MIMIT will establish a public register of certified companies. Those successfully certified will be allowed to market their products with the designation “filiera della moda certificata,” or “certified fashion supply chain.” Companies that misuse this designation without proper certification will face penalties from the AGCM, with fines of up to €50,000 (approximately $58,000).

This initiative marks a critical effort to restore confidence in the Italian fashion industry, ensuring that the values associated with the “Made in Italy” label are upheld in a rapidly changing global market.