Chanel Lands in Serious Trouble

Posted Friday March 14, 2014 9:19 AM GMT

You’d think that Chanel has enough cash that they don’t need to consider breaking the law to save a few bucks, but that might not be the case.

Last week, Turkish media outlets reported that employees intentionally avoided taxes on products entering the country. On Monday (March 10), Chanel confirmed they were under investigation, though they refute “a number of accusations” relating to the case.

According to the Hürriyet Daily News, three employees — including the head of its Turkey operations — smuggled goods inside their suitcases and sold them at Chanel stores in Istanbul. Sources even claim to have obtained email correspondences between the employees of Istanbul stores and Chanel’s Paris headquarters explaining how to register the illegal goods.

In a statement, Chanel said, “To date, we have at no time received any official notice claiming that we have committed acts alleged to be contrary to Turkish law,” though back in 2012, they discovered “major irregularities and failings” in the management of two stores in Turkey that resulted in the firing of those responsible. There’s no word whether the current Customs probe relates back to those employees, although it’s possible.

If they’re found guilty, Chanel employees could face hefty fines and up to 10 years in prison, similar to our friends over at
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Photo Credit: Getty Images

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