Ferragni Law

DDL Beneficenza, popularly known as the Ferragni Law, is an Italian law passed in 2024 in response to Chiara Ferragni's Pandorogate fraud scandal to regulate social media influencers with more than 1 million followers to combat scams and false advertising.

History

The Ferragni Law was proposed in response to the widely publicized Pandorogate scandal involving Chiara Ferragni after she advertised products promising contributions to charity without making promised donations.^[1] Prime Minister Giorgia Meloni declared that despite Ferragni's sanction from the competition authority for deceptive advertising, the scandal had exposed a gap in the law regulating activities by influencers.^[2] It was proposed by Minister for Enterprises Adolfo Urso.^[3]

The law, a DDL (disegno di legge), was approved by the Council of Ministers (Consiglio dei Ministri) on January 25, 2024.^[4] However, it was criticised by some for penalties being considered too low.^[5] The law was part of a wide-ranging backlash for Ferragni when her fraud was revealed which also included loss of sponsors and partnerships, divorce, fines of over €1 million, and prosecution for fraud.^[6][7]

Key provisions

• Regulator designation: The Italian Competition Authority (AGCM) is officially designated as the regulator responsible for monitoring influencers compliance with the Ferragni Law.^[8]
• Product packaging: Mandates that producers and professionals involved in marketing products for charitable purposes must prominently display specific information on the product packaging including the identity of the organization or entity that will receive the charitable proceeds; the specific purpose for which these funds are intended to be used; and the precise amount of money designated for charity if this amount is predetermined. If the charitable contribution is not a fixed sum, then the packaging must clearly state the percentage of the sale price or a fixed monetary amount per unit of product that will be directed towards the charitable activity. This information must be presented in a manner that is easily noticeable and understandable to consumers, potentially through the use of labels or stickers affixed to the packaging.^[8][9]
• Notice and confirmation: Before selling products linked to a charitable initiative, producers must inform the Antitrust Authority (AGCM) of key details—beneficiary, purpose, donation amount or percentage, and the deadline for transferring funds. Within three months of that deadline, they must confirm the payment was made.^[8]
• Sanctions: The AGCM enforces compliance with the law and can impose fines from €5,000 to €50,000 for violations, adjusted based on severity, product price, and volume sold. Severe breaches can increase fines by two-thirds; minor ones can reduce them similarly. Repeat offenders risk suspension of business for up to a year. Sanctions must be publicly disclosed, with publication costs borne by the violator. Half of the collected fines will fund future charitable initiatives.^[8]
• Exemptions: The law does not apply to promotional, sales, or supply activities undertaken by non-commercial entities when these activities are for the purpose of self-financing.^[8]