Ferragni Companies Pay €1.2 Million to Settle Corruption Case | kbnmart

Companies controlled by Italian fashion influencer Chiara Ferragni have agreed to pay at least 1.2 million euros ($1.3 million) to a children’s charity to settle an antitrust case, Italy’s competition authority said Friday.

The regulator has opened an investigation into the sale of Ferragni-branded Easter eggs in 2021 and 2022 with packaging that could mislead buyers into believing they were supporting the children’s charity “I Bambini delle Fate”.

Ferragni Venice and TBS Crew will pay €1.2m over three financial years to the charity, which helps children with autism and disabilities, the regulator said.

AGCM said Easter egg producer Cerealitalia would give the charity at least another €100,000 over the same period, adding that the payments represented binding commitments.

The regulator said failure to comply would lead to the reopening of the antitrust investigation, as well as fines of up to €10 million and, in the event of repeated violations, a ban on doing business for up to 30 days.

In addition to agreeing to the payment, the Finis and TBS crew have decided to “clearly separate their commercial and charitable activities,” the company said in a statement carried by Italian news agencies.

Ferrani’s press office did not immediately respond when contacted by Reuters.

Last year, AGCM fined Ferragni, who has about 29 million Instagram followers, about €1.1 million in a similar case involving Pandoro-branded birthday cakes with Ferragni’s branding and a wrapper referencing a children’s hospital.

Ferragni, who has been facing a string of negative publicity and cancelled partnerships with other companies, has admitted to making a “communications error”, while the Italian government, in direct response to the controversy, has tightened rules on charitable donations.