Italian Fashion's Hidden Costs: Tax Evasion and Worker Exploitation

Italian Fashion's Dark Side: Tax Evasion and Labor Exploitation Exposed Italy's fashion industry, renowned globally, faces a dark underbelly of tax evasion and labor exploitation. A recent Report Rai3 investigation, "Fuori Moda," reveals shocking details of how major brands exploit loopholes and workers alike. The program focuses on Kering, a luxury giant, which allegedly evaded taxes by deceptively moving its Gucci and Bottega Veneta production to Switzerland. This resulted in a settlement of 1.5 billion euros with the Italian tax authorities. The investigation also uncovers widespread labor exploitation in Chinese factories producing for brands like Armani and Dior, where workers endure harsh conditions for meager pay. "They work 12 hours a day, seven days a week," reveals one worker interviewed in the Report segment. The report also touches on the controversial gifting of Hermès bags by Minister Daniela Santanchè to Francesca Pascale, adding another layer of intrigue to the complex issues within the Italian fashion industry. The investigation concludes by highlighting the challenges faced by small, ethical Italian textile businesses struggling to compete against these unethical practices. The fight for fair wages and transparency in the fashion world continues.