Italian antitrust authority AGCM has fined companies controlled by fashion influencer Chiara Ferragni and cake maker Balocco for unfair commercial practices related to the sale of a Christmas cake. The fines stem from a probe into the marketing of the product.
Companies controlled by Italian fashion influencer Chiara Ferragni must pay a fine of €1.075 million ($1.18 million or Rs.. 97.38 crores)) for unfair commercial practices related to sales of a Christmas cake, Italy’s antitrust authority (AGCM) said on Friday.
AGCM also fined Italian cake maker Balocco €420,000 or approximately Rs.3.8 crores.
The penalties stem from a probe the regulator announced in June, related to a Ferragni-branded Balocco pandoro – a Christmas alternative to panettone – sold in Italy late last year, at over 9 euros each, compared to under 4 euros for a regular Balocco pandoro.
AGCM said advertising and higher pricing misled consumers to think that by buying the cake, they were directly contributing to a charity for bone cancer research at a hospital in Turin, and also that Ferragni was herself making donations.
Balocco had made a €50,000 one-off payment to the hospital months before launching the Ferragni pandoro, so sales for the product had no effect on charity donations, the regulator said.
It added that the Ferragni-related companies it sanctioned gave no money to the Turin hospital, despite receiving more than €1 million for the branding initiative and for related promotional activities.
Ferragni, 36, is one of the world’s most famous fashion influencers, with nearly 30 million followers on Instagram.
Ferragni’s press office and Balocco did not immediately return requests for comment.
Conclusion
Italian fashion influencer Chiara Ferraagni has been fined €1.075 million ($1.18 million) for unfair commercial practices related to the sale of a Christmas cake. The fine comes from a probe by Italy’s antitrust authority (AGCM) related to the Ferragni-branded Balocco pandoro, which was sold in Italy at over 9 euros each. AGCM claimed the advertising and higher pricing misled consumers into thinking they were contributing to a charity for bone cancer research at a Turin hospital. The regulator also found that Ferragni-related companies sanctioned gave no money to the hospital, despite receiving over €1 million for the branding initiative and promotional activities.
