Milan prosecutors have opened a formal investigation into Italian luxury fashion house Tod’s and three of its managers on allegations of systematic labor exploitation, a case highlighting increasing scrutiny of supply chain practices within the “Made in Italy” industry. The probe, centering on accusations of “caporalato”-illegal subcontracting and worker abuse-comes as Italian lawmakers move to strengthen protections for brand reputation and worker rights. This investigation uniquely focuses on alleged inaction following internal audits that reportedly revealed ongoing issues, possibly elevating the charges beyond negligence. A hearing regarding a potential six-month advertising ban for Tod’s is scheduled for December 3rd.
Italian luxury fashion house Tod’s and three of its managers are under investigation for alleged labor exploitation, a development coinciding with a government effort to protect the “Made in Italy” brand. Milan prosecutors have registered the company and the three individuals in the register of suspects under Article 231 of the Italian penal code, which addresses corporate liability.
The three managers identified in the investigation are Simone Bernardini, Operations – Footwear and LG Trade Compliance – BOM Manager; Mirko Bartoloni, Supply Chain Industrial Director; and Vittorio Mascioni, Compliance specialist – Tempo e Metodo. The probe centers on accusations of “caporalato,” a term referring to labor exploitation, including violations of working hour regulations, safety standards, and hygiene protocols. Specifically, investigators allege workers were paid as little as €2.75 per hour, and were not compensated appropriately for all hours worked, while also being subjected to substandard living conditions.
This case is drawing increased scrutiny as it differs from previous investigations into the Italian supply chain, including a recent case involving Loro Piana, which also led to a court-ordered oversight. Unlike those instances, the Tod’s investigation centers on the fact that internal audits had already flagged potential issues of exploitation and safety concerns, but the company allegedly failed to act on the findings. This inaction has led prosecutors to suggest a level of intent beyond simple negligence, moving towards a charge of “dolus,” or willful misconduct.
This marks the first time the company itself, along with individual managers, are being investigated. Those found guilty could face up to six years in prison, potentially increasing to eight years if threats or violence were involved.
Prosecutors allege Tod’s demonstrated “serious organizational fault,” bordering on “intentional behavior,” by failing to implement adequate preventative measures against labor exploitation. The company had outsourced audit services to Bureau Veritas, a risk analysis specialist, whose inspections reportedly revealed “numerous indicators of exploitation.” However, Tod’s is accused of treating these audit findings as merely “cosmetic,” commissioning the reports without taking substantive action to address the identified problems.
Milan prosecutors estimate that Tod’s potentially exploited at least 52 workers across six different workshops within its supply chain. Prosecutor Paolo Storari has requested a six-month ban on advertising goods and services by the company, with a hearing scheduled for December 3. The move, if enacted, could significantly impact Tod’s marketing efforts during a crucial sales period.
The investigation comes as Italy’s Court of Cassation recently dismissed a Milan court’s request regarding territorial jurisdiction for a potential oversight commission at Tod’s. Simultaneously, the Italian government is advancing legislation, already approved by the Senate, aimed at “protecting” the reputation of “Made in Italy” brands. This confluence of events underscores the growing pressure on Italian companies to ensure ethical labor practices and safeguard the country’s prestigious brand image.
