Italian prosecutors have launched a formal investigation into luxury fashion group Tod’s and three of its executives over alleged labor abuses at subcontracted workshops, according to sources familiar with the matter. The authorities are seeking a temporary six-month ban on advertising for some of Tod’s products manufactured in the affected factories.
This represents the first direct criminal probe of an Italian fashion house and its management for labor exploitation, following previous cases that largely focused on Chinese-owned workshops to which Italian brands outsourced production.
Allegations Against Tod’s
Milan prosecutors allege that Tod’s was aware of labor violations at its subcontracted factories yet failed to act, despite third-party audits flagging issues over several years. The legal action escalates a case announced last month, which sought judicial administration of Tod’s operations—a measure previously applied to five other luxury fashion labels.
The judge has scheduled a hearing on December 3, 2025, where company representatives may respond or submit written defenses.
Industry Context
Until now, investigations in Milan had targeted outsourced workshops rather than the Italian parent companies themselves. Prosecutors’ focus on Tod’s signals a potential shift toward holding luxury brands accountable for supply chain labor practices, highlighting growing scrutiny of “Made-in-Italy” labels.
Tod’s founder Diego Della Valle previously defended the company’s conduct and warned that supply chain probes risk damaging Italy’s luxury fashion reputation.
Corporate Background
Tod’s was taken private last year by L Catterton, a private equity firm backed by French luxury group LVMH, in coordination with the Della Valle family, the company’s main shareholder.
The outcome of the investigation and potential advertising restrictions could have broader implications for labor compliance and brand transparency in the Italian luxury sector, as authorities intensify oversight of subcontracted production.
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