Benetton Under Fire for Breaking Promises to Store Owners
The Italian government’s business watchdog says Benetton broke its word on how it treats the people who run its stores. Even though Benetton promised to be fairer, it is still acting like a bossy middleman. For starters, Benetton is ignoring the rules for ending partnerships. It is supposed to send multiple warnings before it stops sending clothes to a shop, but it has been cutting them off without notice. It is also using old debts as an excuse to shut people down and refusing to buy back store furniture from owners who are closing up shop, even though they agreed to do so.
Behind the scenes, Benetton is still pulling all the strings. It uses emails and manuals to force shop owners to buy a set amount of inventory, regardless of whether the store is actually making money or needs the stock. Owners don’t even get to choose what they sell; Benetton picks the colors, sizes, and styles for them. If a store owner tries to turn down an automatic shipment they don’t want, Benetton pressures or scolds them. Because Benetton went back on its 2023 legal agreement, the government has launched a new investigation that could end in massive fines. Benetton has one month to explain itself, and the whole case will be decided by late 2027.