Italian fashion influencer Chiara Ferragni, known for her significant presence in the fashion industry and a massive following on social media, faced a substantial fine in a case related to Christmas cake advertising. The fine, amounting to 1.075 million euros (approximately $1.18 million), was imposed for unfair commercial practices linked to the sales of a Christmas cake.
The case was investigated and ruled upon by Italy’s antitrust authority, AGCM. The focus of the investigation was on a Ferragni-branded Balocco pandoro, a traditional Italian Christmas cake. This particular product was sold late last year in Italy at a price of over 9 euros each, which was significantly higher than the under 4 euros charged for a regular Balocco pandoro.
Antitrust authority AGCM Findings
The AGCM’s findings pointed out that the advertising and the higher pricing of the Ferragni-branded cake misled consumers. There was an implied understanding that purchasing the cake would directly contribute to a charity for bone cancer research at a hospital in Turin. Additionally, there was a suggestion that Ferragni herself was making donations to the charity. However, it turned out that Balocco, the cake maker, had only made a one-time payment of 50,000 euros to the hospital months before launching the Ferragni pandoro. This meant that the sales of the product had no impact on further charity donations.
Furthermore, the regulatory authority noted that the Ferragni-related companies sanctioned in this case did not contribute any money to the Turin hospital. This was despite the fact that these companies received over 1 million euros for the branding initiative and related promotional activities.
Chiara Ferragni, at 36 years old, is one of the world’s most famous fashion influencers with a following of nearly 30 million on Instagram. Her influence in the fashion industry and social media is substantial, making the case particularly noteworthy. At the time of the reports, Ferragni’s press office and Balocco had not immediately responded to requests for comment on the matter.
This case highlights the importance of transparent and fair advertising practices, especially when they are linked to charitable causes and consumer perception. The significant fine imposed on Ferragni’s companies and the cake maker serves as a reminder of the potential legal repercussions of misleading advertising.