Chiara Ferragni signs a financial agreement with the antitrust authorities. A temporary respite

On Friday 5 July, the Italian fashion influencer announced that she would be donating at least €1.2 million as part of a deal with the Italian antitrust authorities, who are investigating misleading communications about charitable actions linked to the purchase of certain products. Chiara Ferragni's three companies will donate 5% of their profits over three years, with a minimum of €1.2 million, to a charity for disabled children called Bambini delle Fate, according to the anti-trust agency AGCM (Italian Competition and Market Authority).

It all began a few months ago, when the Italian Competition and Market Authority accused the companies Fenice S.r.l. and TBS Crew S.r.l., which manage Chiara Ferragni's trademarks and rights relating to personality and personal identity, and the Cuneo-based confectionery company Balocco S.p.A. of engaging in an unfair commercial practice. The case concerned the marketing of a limited edition Pandoro cake signed by the famous influencer and entrepreneur. According to the AGCM, the commercial practice in question led consumers to believe that the purchase of the Pandoro made a financial contribution to a charitable cause, without there being any clear and transparent communication about the use of the funds. This led the Antitrust Authority to intervene, imposing a substantial penalty of around one million euros, apparently corresponding to the fee received by Chiara Ferragni for lending her image.

After announcing an appeal, Chiara Ferragni, through her lawyers, decided not to pursue it. In response to the concerns of the antitrust authorities, last week the companies concerned submitted a number of undertakings which were favourably received. One of these concerns the clear separation of commercial and charitable activities. Chiara Ferragni's companies have undertaken not to carry out transactions in which the two types of activity are linked, thereby guaranteeing greater transparency for consumers.

But although the Antitrust Division has closed its investigation, the problems are not yet over for the Italian entrepreneur. Chiara Ferragni is still under investigation for aggravated fraud by the Milan public prosecutor's office, which implicates not only Balocco Pandoro, but also Giochi Preziosi and other campaigns run by the influencer. At the same time, there is a class action launched by Codacons (Coordination of associations for the defence of the environment and the protection of users' and consumers' rights) which could have devastating consequences for the influencer's star. In the event of proven aggravated fraud, the penalty is between one and five years' imprisonment.