Italy’s competition watchdog has launched an investigation into luxury fashion groups Armani and Dior for unfair commercial practices connected to the alleged exploitation of workers in their Italian supply chains.

The authority said it was probing whether the two companies made “untrue ethical and social responsibility statements” about working conditions at subcontractors producing handbags and other upmarket goods.

While both luxury brands “emphasise craftsmanship and workmanship excellence” in public communications, Italy’s Authority for the Guarantee of Competition and the Market (AGCM) said the companies appeared to have relied on suppliers where workers were paid “inadequate” wages, and toiled in poor health and safety conditions, including working excessive overtime.