ROME: Italian Instagram influencer Chiara Ferragni is under investigation for her involvement in a charity cake deal. She falsely suggested that the sale proceeds of the cake would go towards helping children with bone cancer.
Ferragni, who has 29.5 million Instagram followers, is at the center of a scandal involving her 2022 endorsement of a pandoro cake. The cake was purportedly created to raise funds for children undergoing treatment at a hospital in Turin.
Last month, Italy’s competition watchdog found that shoppers were misled into believing that their purchase of the special edition cake would contribute to the charity effort. However, Ferragni’s companies reaped over €1 million in profits from the sales.
Ferragni’s lawyer, Giuseppe Iannaccone, confirmed to AFP that his client has been officially listed by prosecutors in Milan on a register related to the criminal case on suspicion of aggravated fraud. However, this does not imply guilt, but indicates enough evidence to place Ferragni under preliminary investigation.
Prosecutors in Milan did not respond to an AFP request for confirmation of this news.
Ferragni, aged 36, stated in a press release, “I am not worried because I have always acted in good faith and I am sure that this will emerge from the ongoing investigation.”
Last month, the anti-trust authority fined two of Ferragni’s companies and Balocco around €1.4 million for implying to consumers that by buying the “Pandoro Pink Christmas”, they would be contributing to charity. In reality, Balocco had made a fixed-sum donation of €50,000 to the Regina Margherita Hospital.
Balocco issued a statement apologizing for the misunderstanding and expressed confidence in their good intentions.
‘Communication error’
Since starting her blog “The Blonde Salad” in 2009, Ferragni has built up a business empire estimated by Forbes as worth US$8 million per year. The scandal involving the pandoro cake has caused significant damage to her reputation and business activities.
According to reports, Coca-Cola canceled a television spot with Ferragni planned for January and Italian eyewear maker Safilo ended a licensing deal with her in December after the watchdog’s findings.
Last month, Ferragni posted an apology on Instagram, taking responsibility for a “communication error” and pledged to donate €1 million directly to the hospital. She also indicated that she would challenge the competition watchdog’s fine and contribute any reduced sum to the hospital as well.
Despite this apology, Ferragni’s legal issues may not be over, as prosecutors reportedly opened a separate investigation into a similar situation involving chocolate Easter eggs. Ferragni promoted the eggs as supporting a children’s charity, but news reports revealed a different financial arrangement between the candy maker and Ferragni.
Il Fatto Quotidiano reported that the candy maker contributed €36,000 to the charity, while Ferragni was paid €500,000 and €700,000 in 2021 and 2022 for her promotion. – AFP
