Funding is part of a string of remedies following an investigation by the Italian Competition Authority.
Luxury fashion brand Dior will be paying €2 million over five years as part of a settlement to an investigation launched by the Italian Competition Authority in 2024.
The €2 million will fund initiatives aimed at identifying victims of labour exploitation and providing them with "tailored protection, training, support, as well as social and workplace integration," according to the authority.
The payment is part of the remedies that Dior has made to settle an investigation by the authority into the luxury brand and two of its units for alleged violations of the Consumer Code.
According to the authority last year, Dior may have issued false statements in the promotion and sale of its items and accessories about its ethics and social responsibility.
"In particular, with regard to working conditions and compliance with the law by their suppliers," the authority said in a statement last year.
The probe follows the discovery by Milan's prosecutors of several workshops in Italy that allegedly exploited workers to produce goods for Dior and Armani Group, CNN reported.
But the authority said it is closing the investigation "without establishing any infringement" as it accepts Dior's proposed commitments.
In addition to the €2 million fund, Dior also committed to amendments to its ethics and social responsibility statements, as well as new protocols to strengthen its supplier vetting and monitoring processes.
Its marketing and communication employees will also undergo in-house training on consumer protection laws, while its suppliers and subcontractors will receive external training focused on labour law and the Supplier Code of Conduct adopted by Dior.
In a statement, Dior said it partnered with the Italian Competition Authority to define commitments that "increase transparency and strengthen oversight throughout its supply chain," Women's Wear Daily reported.
"We continue to closely monitor, and where appropriate, strengthen, our internal procedures to maintain fair and equitable working conditions for everyone who contributes, with great commitment and skill, to creating the finest quality Dior products," the company said as quoted by the news outlet.
