Italian Instagram sensation Chiara Ferragni faces a fraud investigation in the charity cake scandal.
Italian fashion mogul and Instagram influencer Chiara Ferragni, boasting a massive following of 29.5 million, is under scrutiny for alleged fraud in connection with a charity cake deal gone awry.
The controversy revolves around Ferragni's 2022 endorsement of a pandoro cake, marketed as a fundraising initiative for children with bone cancer undergoing treatment at a Turin hospital.
Italy's competition watchdog recently revealed that consumers were misled into believing their purchases of the special edition Balocco cake, which generated over one million euros for Ferragni's enterprises, would contribute to the charitable cause.
Ferragni, 36, has been officially listed by prosecutors in Milan on a register related to the criminal case, facing suspicion of aggravated fraud.
While this procedural step does not imply guilt, it indicates sufficient evidence to initiate a preliminary investigation.
Ferragni's lawyer, Giuseppe Iannaccone, confirmed her official listing but emphasised her commitment to cooperating with the ongoing inquiry.
Last month, the anti-trust authority imposed fines totaling approximately 1.4 million euros on two of Ferragni's companies and Balocco for falsely implying to consumers that purchasing the "Pandoro Pink Christmas" would support charity.
However, it was revealed that Balocco had made a fixed-sum donation of 50,000 euros to the Regina Margherita Hospital months before the campaign.
Since the launch of her blog "The Blonde Salad" in 2009, Ferragni has built a multimillion-dollar empire, earning lucrative endorsements and launching her own brand.
Despite her success, the Pandoro scandal has dealt a significant blow to Ferragni's reputation and business activities.
Reports suggest that Coca-Cola cancelled a planned television spot featuring Ferragni, and eyewear maker Safilo terminated a licencing deal following the watchdog's findings.
Ferragni issued a public apology on Instagram, acknowledging a "communication error" and pledging a one-million-euro donation directly to the hospital.
However, Ferragni's legal troubles may extend beyond the charity cake debacle, as prosecutors reportedly opened a separate investigation into her promotion of chocolate Easter eggs, where she claimed sales would support a children's charity.
The candy maker allegedly donated 36,000 euros to the charity, while Ferragni received payments of 500,000 euros and 700,000 euros in 2021 and 2022 for her promotional activities.
