“Transnational Litigation in Fashion and Luxury: Corporate Accountability and Legislative Decree 231/2001 Liability of Global Companies”

1. INTRODUCTION

The fashion and luxury sector represents one of the economic sectors most exposed to the risk of strategic transnational litigation, i.e., proceedings that go beyond the merely compensatory dimension to assume a broader function: to induce a change in the organizational models of companies and, in perspective, to orient the entire sector towards higher standards of corporate accountability.

Law, in this scenario, becomes a lever not only to resolve disputes but to influence the reputation, governance, and ethical and social positioning of global companies.

2. CORPORATE ACCOUNTABILITY AND BUSINESS & HUMAN RIGHTS

Corporate accountability conveys the idea that business activity entails obligations functional to the protection of collective interests – environment, workers' rights, sustainability – according to the paradigm of business and human rights.

Legal actions in this field often aim to denounce:

• Undignified working conditions (wages, hours, safety).
• Use of child labor or exploitation.
• Violence, harassment, arbitrary detentions.
• Unfair commercial practices or environmental violations.

Lawsuits can be brought by a plurality of actors: direct victims, representative associations, consumers, or even competitors.

3. THE STRATEGIC DIMENSION

Litigation becomes strategic when it is not limited to obtaining a judicial order but aims to generate a broader impact: influencing public opinion, guiding the future conduct of companies, stimulating regulatory interventions, and redefining the operational standards of an entire sector.

An emblematic example is the Ali Enterprises fire in Karachi (2012), where over 250 workers lost their lives in a textile factory supplying international brands. The legal actions initiated in Germany against the client showed how local tragedies can become instruments of global pressure to impose more rigorous due diligence duties.

4. TRANSNATIONALITY: FORUM SHOPPING AND ANCHOR DEFENDANT

The transnational nature of litigation manifests itself in the choice of forum and the possibility of initiating proceedings in jurisdictions far from the place of the unlawful act.

• Brussels I bis Regulation (No. 1215/2012) and the Lugano II Convention govern jurisdictional competence in civil and commercial matters.
• Figures such as the anchor defendant or forum necessitatis allow the dispute to be brought before legal systems perceived as more sensitive or favorable (e.g., EU countries with greater openness to collective actions).
• Transnational interim measures allow immediate blocking of unlawful conduct with effects that extend far beyond the borders of a single State.

5. THE APPLICABLE LAW AND THE ROLE OF ROME II REGULATION

Another crucial point is the applicable law. Regulation (EC) No. 864/2007 (Rome II) identifies the legislation governing non-contractual obligations. Safety standards, international standards, and public policy principles are relevant. In some cases, overriding mandatory provisions of the forum prevail over foreign provisions, strengthening the protection of victims.

6. EVIDENCE AND INTERNATIONAL JUDICIAL COOPERATION

A strategic aspect is the collection of evidence abroad. Regulation (EU) 2020/1783 governs cooperation in the taking of evidence between Member States, while the Hague Convention of 1970 on evidence and bilateral conventions regulate cooperation with third States. Private investigation and independent audit activities often become decisive for documenting violations in hard-to-reach supply chains.

7. THE EFFECTIVENESS AND CIRCULATION OF DECISIONS

A further objective of strategic litigation is to maximize the circulation of judicial decisions. Brussels I bis Regulation ensures the automatic recognition and enforcement of civil decisions in EU Member States. In perspective, the Hague Convention of 2019 on the recognition of judgments may broaden international effectiveness, although obstacles related to recognition in non-European legal systems remain.

8. THE EUROPEAN UNION AS A REGULATORY DRIVER

Alongside national initiatives (e.g., the French Loi de vigilance or the German Lieferkettengesetz), the EU acts as a central player in the evolution of corporate accountability through various initiatives:

• Directive (EU) 2019/1937 on whistleblowing;
• Directive (EU) 2020/1828 on representative actions for the protection of consumers;
• Proposal for a Directive on corporate due diligence (Corporate Sustainability Due Diligence);
• Proposal for a Directive against SLAPPs.

These initiatives signal a clear trend: to bind companies to positive duties of vigilance and transparency along the entire value chain, with civil liability also in case of violations.

9. OPERATIONAL CONCLUSIONS FOR FASHION AND LUXURY COMPANIES

For luxury and fashion houses and groups, strategic transnational litigation is not a theoretical risk but a concrete possibility.

1. It is necessary to strengthen the organization and control models under Legislative Decree 231/2001, extending them to the supply chain.
2. Subcontracting agreements must contain binding and verifiable ethical and auditing clauses.
3. Finally, it is necessary to prepare a multidimensional compliance system, which integrates criminal, civil, commercial law, and reputational crisis management tools.

Only a preventive and integrated strategy can protect companies from actions that, rather than compensatory, are designed to affect governance and global reputation.