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Editor’s note (December 18th, 2025): This article was written in November, before the conclusion of Omnibus I negotiations. The provisional agreement adopted since then confirms the scope reduction analysed below. On 13 November, the European Parliament endorsed reduced reporting and due diligence requirements, lifting the CSDDD threshold to 5,000 employees  and €1.5bn in revenue . Trilogues on Omnibus I started on November 18th , and negotiations are expected to wrap up in e

When LVMH's Loro Piana was placed under judicial administration, it exposed workers earning $5/hour to produce $4,000 jackets. This isn't just scandal—it's systemic vulnerability hiding behind 'Made in Italy.' Using AlphaYoda's methodology, we reveal how subcontracting layers create high-severity risks threatening luxury's trust premium. As regulations tighten, the question isn't whether more scandals will emerge—it's whether brands can reform fast enough.