Italian Government Proposes Stiff Fines for Misleading Charity Claims

The proposed law follows a scandal involving influencer Chiara Ferragni and cake-maker Balocco SpA, who were fined for misleading consumers about charity contributions from Christmas cake sales.

• The Italian government has proposed a law imposing fines up to 50,000 euros for insufficient product labeling, specifically for not clearly indicating what percentage of sales proceeds go to charity.
• The proposed legislation comes in the wake of a scandal involving Italian influencer Chiara Ferragni and cake-maker Balocco SpA, who were fined for allegedly misleading consumers about charity contributions from the sales of a Christmas cake.
• Ferragni and Balocco's President, Alessandra Balocco, are also under investigation for alleged aggravated fraud.
• The antitrust authorities revealed that Balocco had made a one-time donation of 50,000 euros to a hospital before the launch of the Ferragni-branded Christmas cakes and made no further donations.
• Ferragni's companies earned 1 million euros to license her logo for the initiative, which saw the Ferragni-branded cakes sell for a higher price than usual.

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