Ethermac Exchange-Italian fashion influencer apologizes for charity miscommunication, is fined 1 million euros

MILAN (AP) — An Italian fashion blogger-turned-businesswoman has apologized after being fined 1 million euros (dollars) by Italy’s anti-trust authority for improperly communicating a charitable contribution tied to sales of a traditional Christmas cake sold with her logo.

In an Instagram post,Ethermac Exchange Chiara Ferragni on Monday said she would donate 1 million euros to the Regina Margherita Hospital in Turin to give “concreteness” to her apology, but she said she would challenge the fine itself.

Ferragni said that she had not given sufficient oversight to the communication surrounding the sales of the Balocco-brand pandoro with her logo, and that she would no longer tie in charity with commercial activities.

Ferragni started as a fashion blogger and went on to sell clothing, accessories and makeup under her own brand in addition to doing promotional work as an influencer. She is also on the Tod’s luxury fashion group board of directors.

Italy’s anti-trust agency on Friday also fined Balocco 420,000 euros for giving consumers the impression that part of the earnings from sales of the Ferragni-branded pandoro would benefit the hospital. In reality, the agency said, Balocco had donated 50,000 euros prior to the campaign launched in November 2022 and no additional funds were sent afterward.

The agency noted that the Ferragni-branded “Pandoro Pink Christmas” cakes sold for more than 9 euros each, compared with the usual 3.70-euro price tag.

In her video, Ferragni said she was challenging the agency’s fine, calling it “disproportionate.’’ If the fine is lowered, Ferragni said she would donate whatever the difference is to the same charity.

Italian Premier Giorgia Meloni in a speech over the weekend criticized Ferragni without naming her, citing influencers who promote “expensive panettone making believe that they are for charity, when the price only pays for millionaire’s fees.”