Chiara Ferragni Acquitted of Fraud Charges Amidst Regulatory Changes for Influencers in Italy

Renowned Italian fashion influencer Chiara Ferragni was acquitted of aggravated fraud on January 14, bringing a close to a tumultuous two-year legal battle. The verdict, announced in a courtroom filled with reporters, marked a significant moment for Ferragni, who expressed relief and gratitude for the support of her followers during this challenging period. Ferragni, 38, had faced allegations related to her endorsements of promotional products such as a special edition pandoro cake and Easter eggs. These items were marketed as raising funds for charitable causes, specifically to benefit children receiving treatment at a hospital in Turin. However, a notable discrepancy came to light: shoppers were led to believe that purchasing the cake for the promotional price of €9, compared to its regular price of €37, would direct significant funds to the hospital. In reality, the hospital received only a single donation of €50,000 (€58,000) from the confectionery company Balocco, while Ferragni's business ventures accumulated around €1 million from these promotions. The Italian Competition Authority (AGCM) responded to the controversy by slapping Ferragni’s companies with significant fines totaling €1 million (approximately $1.2 million), citing unfair commercial practices connected to the highly publicized "Pandoro Gate" scandal. Balocco faced its own penalties, amounting to €420,000. In the aftermath of the scandal, prosecutors had sought a sentence of one year and eight months in prison for Ferragni and her associate, Fabio Damato. However, Ferragni's legal team, led by lawyer Giuseppe Iannaccone, maintained that she had acted in good faith throughout the promotional efforts. The case has not only affected Ferragni's professional reputation—leading to the cancellation or non-renewal of several endorsements—but has also prompted Italy's government to impose stricter regulations on influencers. New rules mandate that individuals with more than 500,000 followers register with the Italian Communications Regulatory Authority (AGCOM) and adhere to transparency guidelines regarding promotional content. Ferragni's journey to stardom began in 2009 when she launched her fashion blog, The Blonde Salad. By 2017, she had been recognized by Forbes magazine as the top fashion influencer, leveraging her online presence into a profitable business that includes her own fashion label. Despite the recent legal troubles, Ferragni's influence remains significant in the ever-evolving landscape of social media marketing. As of the January ruling, Ferragni can finally put this chapter of her life behind her, but the ripple effects of the case will likely reverberate across Italy's influencer marketing landscape for the foreseeable future. Related Sources: • Source 1 • Source 2