n the glittering aftermath of Paris Fashion Week 2025, where titans like Dior and Armani captivated audiences, a deeper investigation reveals a jarring disconnect. The opulent facades of these luxury houses stand in stark contrast to the disturbing allegations of worker exploitation within their supply chains.

Luxury blogger extraordinaire, Handbagholic, ignited a firestorm of controversy with accusations of worker abuse by Dior’s Italian subcontractors. Adding fuel to the flames is the gap separating the meager costs of production from the exorbitant retail prices such as a bag produced for $57 being sold for $2000 by Dior.

These concerns are no longer mere whispers. A Milan court, in a move validating these anxieties, placed Dior under court supervision for a year due to subcontractor exploitation. Similarly, Armani faced a reckoning in April for its failure to adequately oversee its supply chain. These rulings serve as a stark reminder of the hypocrisy inherent in brands that champion robust environmental, social, and governance (ESG) policies while potentially turning a blind eye to human rights abuses.

“The fundamental issue,” declares Milan court president Fabio Roia, “lies in the mistreatment of human beings.”

He underscores the critical responsibility of businesses to ensure ethical practices permeate every facet of their supply chains. The court has proposed stricter regulations within the Italian fashion industry, a global powerhouse in luxury goods production.

Luxury industry consultant Alessandro Balossini Volpe reveals that rumors of unethical practices have been a persistent undercurrent for decades. He warns that this case could be a devastating blow to the industry’s credibility, raising questions not only about product quality but also about the very soul of luxury brands themselves.

This case serves as a resounding wake-up call for the luxury fashion industry. Will these brands prioritize profit margins over ethical practices, risking the erosion of consumer trust and their carefully cultivated reputations? Or will they take decisive action to usher in a more sustainable and ethical future?

– With additional information from Forbes