LVMH’s second-largest fashion brand Dior was late in publishing supply chain disclosures required by UK law and displayed outdated third-party certification on its website, Reuters found.

The UK’s Modern Slavery Act of 2015 mandates companies with UK turnover above £36 million to annually disclose steps taken to combat forced labor. Until July 19, Dior’s UK website showed a 2020 anti-slavery statement and an invalid sustainability certification.

Dior, part of the $345-billion LVMH group, came under scrutiny after Italy’s competition authority announced an investigation into potential sweatshop conditions at some Italian contractors. This investigation led Europe’s top asset manager Amundi and other investors to urge LVMH to improve supplier oversight.

Following Reuters’ inquiries on July 18, Dior published a 2023 modern slavery statement, approved by Christian Dior UK’s board. The updated statement outlines plans for employee training on modern slavery and encourages action against suspected wrongdoing.

Dior admitted to having outdated disclosures and terminated relationships with suppliers involved in illegal practices. Armani, also under investigation, expressed confidence in a positive outcome.

LVMH’s CFO Jean-Jacques Guiony stated LVMH was unaware of alleged worker exploitation at Dior suppliers in Italy but accepted full responsibility and vowed to intensify supply chain controls.

Until July 19, Dior’s website featured the Butterfly Mark from Positive Luxury, a sustainability certification terminated in June 2023. Brands must remove such certification within 90 days of non-renewal.

New European Union supply chain rules will soon enforce tighter supplier audits to mitigate human rights and environmental risks.