Italian Fashion Influencer Faces Over $1 Million Fine for Fake Christmas Cake Charity Claims; What Really Happened

Fashion influencer heavily fined for misleading charity claims

Italy's renowned fashion influencer, Chiara Ferragni, is facing allegations of profiting from charity initiatives involving the sale of branded Christmas cakes and Easter eggs. Recently, the Italian antitrust authority imposed a fine of over €1 million ($1.10 million) on Ferragni, per Wanted in Rome. The fine was a consequence of misleading consumers into believing that their purchase of an expensive pandoro cake would contribute to funding medical equipment for a children's hospital in Turin.

The situation regarding the Ferragni-branded pandoro might escalate into a criminal matter, as reported by news agency ANSA. The Milan prosecutor's office is reportedly considering opening a file on the issue. The pandoro in question, designed by Ferragni with pink icing sugar, was sold in Italy last year for €9 ($9.90), more than double the regular retail price of unbranded cakes produced by the confectioner Balocco.

The competition authority also imposed a fine of €420,000 ($4,61,882.40) on Balocco. This was based on the finding that Balocco had made a one-time donation of €50,000 ($54,986.00) to the hospital several months before the pandoro was released. Furthermore, the authority discovered that two companies controlled by Ferragni received promotional fees totaling around €1 million ($1.10 million). Surprisingly, none of this sum was directed to the children's hospital.

Journalist Selvaggia Lucarelli brought this case to light. In response to the controversy, Ferragni, who boasts nearly 30 million followers on Instagram, posted a heartfelt video on December 17, 2023. In the video, she apologized for the pandoro incident, acknowledging a "communication error" but asserting that it was a "mistake made in good faith."

Chiara Ferragni vows million-dollar donation amid controversy

Chiara Ferragni has pledged to donate €1 million ($1.10) to the Regina Margherita Children's Hospital in Turin and promised to keep her business and charity efforts entirely separate going forward. The 36-year-old social media entrepreneur plans to appeal the authority ruling and the perceived "disproportionate and unjust" fine.

However, more challenges emerged for Ferragni when journalist Selvaggia Lucarelli investigated a similar case involving Ferragni-branded Easter eggs supporting the association I Bambini delle Fate which assists children with autism. Lucarelli's report suggested that Ferragni profited significantly from the Easter egg sales produced by Dolci Preziosi, far exceeding the amount donated to the charitable cause. In response to the scrutiny, Ferragni promptly removed Instagram posts promoting the Easter eggs. Fortunately, screenshots had been taken the day before.

Dolci Preziosi owner reveals Ferragni's fees and donation details

Franco Cannillo, the owner of Dolci Preziosi, clarified that there was no direct link between egg sales and the donation to I Bambini delle Fate. The company contributed €36,000 ($39,592.80) over two years to the charitable cause. When asked about Ferragni's compensation for endorsing the initiative, Cannillo recalled payments of approximately €500,000 ($5,49,900.00) in 2021 and around €700,000 ($7,69,860) in the second year. However, negotiations halted when Ferragni requested an exorbitant sum, resulting in no further agreements.

Ferragni's husband defends her and clashes with Italian Prime Minister

Ferragni's husband, rapper Fedez, responded to the pandoro controversy expressed frustration, particularly with Italian Prime Minister Giorgia Meloni, who made a thinly veiled criticism of Ferragni, saying, "The real models to follow are not the influencers who make lots of money by wearing clothes and showing bags or even promoting expensive cakes that make people believe they are charitable."

Charity track record challenged to correct donation details

Fedez also highlighted their track record, recalling significant donations at the beginning of the COVID-19 pandemic. He claimed, "My wife and I raised funds of €4 million ($4.40 million), and in 10 days we built a 150-bed intensive care unit that saved lives," in a post on Instagram.

However, the Lombardy region later issued a statement clarifying that the number of beds created in the intensive care unit, thanks to donations collected by Ferragni and Fedez, amounted to 14, not 150. Fedez also criticized journalist Selvaggia Lucarelli, questioning Lucarelli's contributions to charity, saying, "Spoiler, jack s**t." In response, Lucarelli pointed out that thanks to her efforts, a children's hospital had just received a donation of €1million ($1.10 million).