Pandorogate
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Pandorogate is a fraud scandal surrounding Italian influencer Chiara Ferragni following revelations that she had promoted products claiming proceeds would go to charity while pocketing profits. The scandal involves multiple investigations into Ferragni's charitable partnerships with millions of euros in alleged unjust profits identified. Over a million euros in fines were imposed on her and her companies while an indictment for aggravated fraud was obtained in January 2025 with a trial expected in September 2025.
The scandal led to the enactment of the Ferragni Law in Italy to regulate promotion by influencers with over a million followers to prevent future crimes of fraud and false advertising.
Background
In December 2022, journalist Selvaggia Lucarelli published an article in Domani skeptical whether sales of pandoro cakes promoted by Ferragni to support a children's hospital were actually resulting in donations to the hospital.[1] Despite promotions suggesting that purchases of the cakes resulted in support to the hospital, Lucarelli revealed that in reality no donations were made from the sales.[1] The revelations created backlash in Italy against Ferragni.
Italian Competition Authority fine
In summer 2023, the Italian Competition Authority announced that it had started an investigation against the manufacturer of the cakes, Ferragni, and her companies.[2][3] The investigations revealed that Chiara Ferragni and her companies had collected over one million euros while deceiving consumers who believed they were making a charitable contribution to the hospital by purchasing the cakes.[4][5][6][7] The authority imposed a fine of 400,000€ on Ferragni personally along with a fine of 675,000€ to her companies.[4][8]
In response, Ferragni published on Instagram an apology for her actions and promised a donation of one million euros to the hospital.[9][10] However, she appealed her punishment from the Competition Authority claiming it was unfair due to the hospital receiving benefits from the publicity generated by her promotion despite not receiving donations.[11][12] She later renounced her appeal.[13]
Expanded investigations into Ferragni
Summarize
Perspective
In December 2023, the Italian Consumer Association filed reports against Ferragni with 104 prosecutors against the Italian influencer accusing her of aggravated fraud in the incident and asked the Financial Police to seize her accounts.[14] In response, it was confirmed that investigations had been opened by state prosecutors in Milan, Cuneo, Prato, and Trento.[14]
The investigation in Milan expanded to include new charges of aggravated fraud against Ferragni for charity promotions by Ferragni in 2019 and 2021.[15] The charities who were the advertised recipients of proceeds from both promotions confirmed that they had not received the proceeds with one declaring that they were strangers to the initiative.[16][17]
By January 2024, it was reported that there were five open investigations of fraud against Ferragni with two additional instances found by prosecutors in Cuneo.[18]
In April 2024, the Competition Authority opened a new case against Ferragni for promotion of easter eggs in 2021 and 2022 which allegedly raised funds for charity without corresponding donations being made.[19] The authority noted that it had closed an investigation into Ferragni's ex-husband Fedez for a similar promotion after concluding that he had properly made corresponding donations to charity for the sales.[19]
In October 2024, the Milan Public Prosecutors concluded that Ferragni had realized an unjust profit of 2,225,000€ in the two cases it was investigating, not including "non-pecuniary profit", and announced they would seek to indict her for aggravated fraud.[20]
In December 2024, Ferragni settled the complaint filed by Codacons the Italian Consumer Association against her agreeing to pay each consumer who had contacted the Codacons 150€ in compensation and make a donation of 200,000€ to charity.[21] It was reported that her lawyers hoped the settlement would prevent Milan prosecutors from seeking her criminal conviction.[21]
Indictment for aggravated fraud
In January 2025, prosecutors in Milan announced that they had successfully indicted Ferragni on charges of aggravated fraud and would send the case to trial.[22] The trial is scheduled to begin in September 2025 with Ferragni facing up to five years in prison.[23]
See also
- Ferragni Law - Italian law regulating charitable partnerships by influencers to prevent fraud following the scandal
References
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