Prada Cuts Ties With Over 200 Suppliers After Labour Abuse Audit
Prada Cuts Ties With Over 200 Suppliers After Labour Abuse Audit
The Italian luxury fashion house Prada has taken decisive action in its own supply chain, severing relationships with over 200 suppliers after uncovering widespread labor law violations and compliance breaches over the past five years. This development comes amid increasing scrutiny of working conditions in the luxury fashion industry, particularly in Italy’s fragmented subcontracting networks.
Rigorous Supplier Audits Reveal Systemic Issues
Since 2020, Prada has implemented an intensive internal audit program aimed at enforcing its supplier code of conduct and identifying labour abuses across its Italian manufacturing base. The campaign has included:
- More than 850 on-site inspections of suppliers and subcontractors in northern and central Italy.
- Occasional night-time stakeouts and unannounced visits to detect unauthorised subcontracting and misconduct.
- Investigations into issues ranging from inadequate health and safety standards to improper waste handling and evidence of on-site worker dormitories in several facilities.
The brand now estimates around 1,000 suppliers and subcontractors under contract, but more than 222 of these relationships have been terminated after suppliers failed to meet compliance standards.
Reasons Behind the Terminations
Prada’s audit found numerous forms of labour and legal non-compliance, including:
- Unauthorised subcontracting without oversight, leading to poor working conditions.
- Health and safety violations and environmental compliance issues.
- In extreme instances, workers living inside factories, highlighting the range and severity of the problems found.
While some audits surface serious violations warranting immediate termination, others prompt remediation plans. Prada says it engages with suppliers where possible to drive corrective action, but retains a “zero tolerance” stance on serious breaches.
Context: Industry Scrutiny and Labor Abuse Investigations
Prada’s actions take place against the backdrop of a broader investigation by Milan prosecutors into alleged labour exploitation across the Italian luxury fashion ecosystem. Authorities have accused some brands of failing to adequately oversee suppliers that subcontract work to firms exploiting migrant labour.
Although Prada itself is not under investigation, prosecutors have asked the group to provide information on its internal compliance and audit mechanisms, part of a probe spanning more than a dozen luxury names.
Prada’s Approach Versus Industry Norms
Prada’s rigorous, in-house audit strategy sets it apart from many luxury peers who often rely on third-party auditors or external inspections for compliance checks. Prada has invested in an internal audit team complemented by external consultants to ensure close oversight of its supply chain.
Company officials say the decline in termination rates, from more than half of inspected suppliers in the early years to fewer recently, reflects more robust compliance and better supplier awareness of Prada’s standards.
What’s Next for Prada and the Luxury Sector
Luxury brands worldwide face growing pressure from regulators, consumers and civil society to ensure ethical labour practices throughout supply chains. Prada’s proactive auditing and supplier repositioning may serve as a model for supply chain governance in the fashion industry, but critics and human rights advocates insist that structural challenges remain, particularly in highly fragmented manufacturing ecosystems.
As Italy and other jurisdictions strengthen transparency and labour protections – including mandatory audits under upcoming sustainability reporting rules – Prada’s experience underscores both the difficulty and urgency of combating labour abuses in global luxury supply chains.
