An Italian police raid has uncovered that Dior uses suppliers who exploit workers to produce its high-priced bags.
According to Business Insider, Dior pays about 53 euros to produce handbags that retail for approximately 2,600 euros.
The investigation revealed that third-party suppliers employ workers under poor conditions, producing the bags for a fraction of the retail price.
The Italian prosecutor found that Dior had not taken enough measures to verify the working conditions or the skills of the companies it contracted.
During the raids, workers were found sleeping in the factories to keep production running around the clock.
Safety devices on machines had been removed to increase work speed. Many workers were from China, some working without the necessary papers.
Giorgio Armani also became part of the investigation.
The company paid 92 euros per bag, which was sold for over 1,765 euros.
The judges in Milan have ordered that the units of both companies be placed under judicial administration for one year to address the abuses.
