Chiara Ferragni scandal: Charity rules change in Italy 2024
Last christmas season, Chiara Ferragni announced a charity drive to buy the typical pandoro. After all, her intentions weren’t so clear and this led Italy to tighten the rules when it comes to charitable actions.
After Chiara Ferragni scandal , charity rules are being straitened in Italy 2024
Following criticism of prominent fashion influencer Chiara Ferragni for posting false information about a Christmas cake “Pandoro”, the Italian cabinet is scheduled to approve a bill requiring more transparency from businesses that associate product sales with charity actions.
With almost 30 million Instagram followers, Ferragni was fined last month after Italy’s competition watchdog AGCM discovered that buyers of pandoro cakes bearing the Ferragni brand had been tricked into believing that their purchase was supporting a children’s hospital.
Among those who chastised the influencer were Prime Minister Giorgia Meloni, who issued an apology and acknowledged making a “communications error”. She pledged to donate €1 million, or $1.1 million, to a hospital serving children.
After that, Ferragni’s contract with eyewear manufacturer Safilo was terminated, with Safilo claiming that Ferragni had broken good conduct clauses. Milanese prosecutors are now looking into Ferragni for possible fraud connected to previous campaigns. Her attorneys assured that she would clear herself of all charges.
According to a draft of the bill obtained by Reuters and scheduled for approval, goods associated with charitable contributions must state the reason and beneficiary as well as the amount of the purchase price that will be donated to charity.
The bill stipulates that failure to comply with these obligations could result in fines of up to €50,000 ($54,500). If they violate the rules more than once, their activities may be suspended for up to a year.
This week, Prime Minister Meloni declared that the government was prepared to step in and address the apparent lack of transparency in the regulations governing commercial activities with charitable purposes, as demonstrated by the Chiara Ferragni case.
Tight regulations may increase the credibility of charity campaigns in the near run, but regulating social media advertising will still be difficult in the long run, according to Matteo De Angelis, a marketing professor at Luiss University in Rome.
“There will be gray areas that make it difficult to determine what is sanctionable and what is not,” he told Reuters, calling the world “difficult to control.”
More about Chiara Ferragni’s scandal
One of the biggest names in Italy claimed to be in a “calm” state following her placement under investigation for fraud in connection with a charitable endeavor involving Christmas cakes.
In December, Italy’s anti-trust authority fined Chiara Ferragni €1 million. Since then, the fashion influencer has accumulated an estimated €40 million in wealth and 29.5 million followers. Prosecutors in Milan launched an investigation into the matter.
According to the agency, customers were tricked into thinking they were supporting a Turin hospital when they purchased a pandoro cake—a panettone substitute made by Piedmont-based Balocco.
Aggravated fraud is the subject of an investigation into Ferragni and Alessandra Balocco, the head of the cake company. The antitrust agency also fined Balocco €420,000 for deceiving customers. Prior to initiating the campaign, Balocco donated €50,000 to the hospital in Turin and stopped making donations. According to reports, Ferragni sold £1 million worth of cakes.
The inquiry comes after weeks of discussion in Italy regarding the influencers’ financial gain from the products they endorse, particularly when it is portrayed as a charitable endeavor. Following the revelation of the cake scandal, Ferragni has lost 200,000 followers. Ferragni’s comments about the charity fraud:
“I am calm because I have always acted in good faith and I am certain that this will emerge from the ongoing investigation. I have full confidence in the work of the judiciary and with my lawyers.”
Conclusion: Italy felt the need to change the rules when it comes to charity because of Chiara Ferragni’s scandal.
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