Italian influencer Chiara Ferragni cleared of aggravated fraud charges in Pandorogate trial

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ROME (AP) — Italian influencer Chiara Ferragni, once the unrivalled social media star, was cleared of aggravated fraud charges on Wednesday in the so-called Pandorogate trial, centered on allegedly misleading charitable deals.

Milan prosecutors accused Ferragni — who faced a potential jail term in the trial —- of misleading consumers in 2022 and 2023 by promoting sales of a limited-edition pandoro cake produced by Italian confectionery company Balocco. The inflated prices were supposed to directly support children's medical treatment.

A similar case involved Ferragni-branded Easter eggs in support of “I Bambini delle Fate,” an association that helps children with autism.

Ferragni, facing the brunt of public and legal scrutiny, issued an apology immediately after the controversies emerged, pledging to donate 1 million euros to the Regina Margherita children’s hospital in Turin that was involved in the Pandoro initiative. She also paid the “Bambini delle Fate" association 1.2 million euros ($1.3 million).

“We are all moved,” the 38-year-old influencer said as she left the courtroom after the acquittal. “I thank everyone, my lawyers and my followers.”

The scandal hurt Ferragni’s popularity on social media, eroding her fan base and denting her vast business empire, which spanned beauty, licensing and fashion. Ferragni’s personal life also took a hit as her marriage with popular rapper Fedez collapsed under public scrutiny.

Her status as Italy’s most recognizable influencer made her case an ideal test for prosecutors and regulators, eager to send a message to other players in the surging and mostly unregulated creator economy.

In December 2023, Italy’s antitrust authority fined Ferragni more than 1 million euros for “unfair commercial practices” in relation to the branded pandoro cake.

A few months after the scandal broke, the conservative government led by Premier Giorgia Meloni introduced a bill — dubbed the Ferragni law — that directly targeted influencers suspected of misleading their fan base with unclear marketing promotions.

It's not immediately clear if prosecutors will appeal.