Brunello Cucinelli’s shares fell sharply after short-seller Morpheus Research accused the Italian luxury brand of misleading investors about its Russian operations and diluting its image through discounting. Morpheus, which disclosed a short position, said a three-month investigation involving store visits, trade data, and ex-employee interviews indicates the company continues to operate boutiques in Moscow, supply retailers such as Tsum despite EU sanctions, and off-load excess stock via off-price channels. The company rejected the claims as “defaming,” with CEO Luca Lisandroni citing Italian Customs inspections that found no violations. He said Russia now represents about 2 percent of sales, down from 9 percent in 2021, and framed the brand’s presence as necessary to pay staff and honor leases rather than expand operations. The company said exports to Russia dropped from €16 million in 2021 to €5 million in 2024 and signaled potential legal action, as the market reaction highlighted how short-seller campaigns can quickly pressure credibility-driven luxury names.
The Federal Trade Commission reached a settlement with Amazon over allegations the company used dark patterns to trap consumers in Prime subscriptions. The order requires Amazon to pay a civil penalty and provide refunds to consumers. The case underscores growing regulatory scrutiny of manipulative user-interface tactics across digital commerce and sets clearer expectations for subscription businesses. For brands, the message is to prioritize transparency, informed choice, and easy cancellation processes, which the agency signals are becoming baseline requirements in the subscription economy.
The Global Fashion Agenda published the 2025 Fashion CEO Agenda, urging leaders to embed sustainability at the core of strategy and warning that industry progress remains too slow. The roadmap reinforces five priorities as non-negotiables: respectful and secure work environments, better wage systems, resource stewardship, smart material choices, and circular systems. It pairs long-term ambitions with near-term actions, calling for leadership that looks beyond quarterly gains, measurable commitments such as living wage frameworks and science-based climate targets, and an industry-wide push to curb overproduction. The report emphasizes material innovation, including low-impact and regenerative sourcing and textile-to-textile recycling, and stresses that systemic change requires collaboration, robust regulation, and capital investment. It positions sustainability as a central business imperative, with inaction framed as a material risk as the industry moves toward 2030.
In the United Kingdom, a new petition from the British Fashion Model Agents Association seeks legal protections for fashion models’ likenesses amid the rise of Artificial Intelligence. The petition argues that models have not consented to the use of their image for Artificial Intelligence purposes and calls for explicit, voluntary, and uncoerced written consent under clear licensing terms. It highlights the absence of unified image rights legislation in the UK compared to developments in the European Union and the United States, noting that models currently rely on a patchwork of privacy, publicity, and intellectual property laws. With synthetic “Artificial Intelligence influencers” and brands experimenting with digital avatars, advocates warn that models are vulnerable to unauthorized digital cloning and urge the government to establish a framework that balances innovation with protections for workers in fashion.
