Italy's antitrust authority has closed its investigation into LVMH-owned Dior and two of its units, which were accused of misleading consumers about working conditions at their suppliers. The authority found no wrongdoing but acknowledged that Dior had made several formal commitments.

As part of its pledges, Dior agreed to contribute 2 million euros ($2.3 million) over five years to support initiatives aimed at helping victims of labor exploitation. These programs will also be accessible to other brands.

The authority announced on Wednesday that Dior also committed to revising its ethical and social responsibility messaging and adopting stricter processes for selecting and monitoring suppliers.

The investigation followed revelations by prosecutors in Milan last year, who uncovered workshops where underpaid workers—often undocumented immigrants—produced leather bags for Dior and Armani. These goods were sold to the brands for a small fraction of their final retail price.

In response, Italy's antitrust authority launched a probe into whether the luxury labels had misled consumers regarding their messaging on craftsmanship and corporate responsibility…

Most recently, an Italian court placed a unit of fashion brand Valentino under judicial administration for one year after uncovering similar labor abuses—adding to a growing list of high-profile cases that have put the luxury sector under scrutiny…