Loro Piana Denies Allegations: Loro Piana, an Italian label that is a part of the LVMH group, has formally denied the claims that its vicuña wool suppliers in Peru unfairly treated it. Congressman Robert Garcia (D-CA)—a native Peruvian and Democrat—asked Loro Piana’s president, Antoine Arnault, and CEO, Damien Bertrand, for clarification after the dispute broke out in response to a Bloomberg report.

Luxurious clothing made from materials like cashmere, vicuña, and extra-fine wool is Loro Piana’s forte. Villagers in Lucanas, Peru, who shear vicuñas for Loro Piana’s sweaters, get only $280, according to the research, which emphasized a striking disparity in salaries.

According to Bloomberg, the price paid to the inhabitants of Lucanas for raw vicuña yarn has dropped by 36% in the last ten years. Nevertheless, Loro Piana strongly refutes these claims, arguing that they are unfounded and do not represent the truth or the label’s history of assisting local communities.

Loro Piana told AFP that while they do buy from the Lucanas community, it barely accounts for 4% of their total Peruvian purchases. Regardless, the label stress that the community gets a hefty paycheck—hundreds of thousands of dollars a year—for what they do.

The vicuña wool harvest happens once a year, and the price per kilo can vary from $300 to $400, depending on the market, as shown on the label. Loro Piana also highlights its substantial ten-year contribution of approximately $20 million to Peruvian suppliers.

In response to concerns raised by some community members, Loro Piana has committed to taking action in Peru to strengthen oversight of the local supply chain. The goal of these endeavors is to redistribute and distribute monies fairly to organizations who participate in the vicuña harvesting process.