Top Italian influential businesswoman Chiara Ferragni is under investigation for fraud by the Milan prosecutor’s office over her role in a charity Christmas cake initiative she endorsed, local media reported on Monday.
The criminal investigation was launched after Italy’s antitrust authority issued fines of more than 1 million euros ($1.09 million) last month on Ferragni-affiliated companies and 420,000 euros on Italian company Balocco for unfair commercial practices in relation to the sale of the “branded” Pandoro Christmas cake with pink icing.
According to the competition watchdog, customers were led to believe that by purchasing the cake they would make a donation to a children’s hospital in Turin, whereas the €50,000 donation had in fact already been made by Balocco several months earlier. The documents show that companies linked to Ferragni allegedly earned more than 1 million euros from this initiative.
Italian media reports say prosecutors are also investigating other charitable initiatives endorsed by Ferragni, including Easter eggs produced by food company Dolci Preziosi, which allegedly brought her much more than the amount donated to the charity in question.
Last month, following the antitrust fine, Ferragni apologised on her social media account for misleading consumers over Pandoro purchases. The businesswoman, who has almost 30 million followers on Instagram, has pledged to donate 1 million euros to the Regina Margherita paediatric hospital in Turin.
