A Christmas cake may become the most expensive mistake of Chiara Ferragni’s career.
This week, Italy’s most recognisable influencer appeared in a Milan courtroom as prosecutors formally sought a 20-month prison sentence over an advertising scandal that has quietly become one of Europe’s most consequential legal tests of creator power.
The charges stem from a 2022 holiday collaboration with Italian confectioner Balocco.
The limited-edition co-branded pandoro cake, wrapped in Ferragni’s signature pink and promoted across her vast social platforms, was presented as a charitable initiative tied to donations for the Regina Margherita Children’s Hospital in Turin.
Prosecutors allege that consumers were misled into believing that each purchase of the cake would directly generate hospital funding. In reality, authorities say Balocco had made a single €50,000 donation months prior to launch, with no mechanism linking individual sales to further giving.
What Ferragni later described as a “communication error” swiftly escalated into a national scandal. In December 2023, Italy’s competition authority ruled that the campaign constituted a misleading commercial practice.
Ferragni’s companies were fined more than €1 million, while Balocco received a smaller penalty. The deeper rupture, however, was reputational. On December 19, 2023, she posted an emotional video to Instagram, captioned in part:
“My mistake remains, but I want to make sure that something constructive and positive will come from this mistake.”
The fallout was immediate. Ferragni lost followers, major brand partnerships were terminated, and her once-dominant presence across the European fashion circuit largely disappeared.
The controversy also prompted legislative change. It directly accelerated what has become known as the “Ferragni Law,” a reform designed to tighten oversight of influencer marketing, particularly when commercial promotions involve charitable claims. The shift signalled that influencers would now be regulated as formal commercial operators rather than treated as informal digital personalities.
The criminal investigation soon followed. Milan prosecutors opened a formal case into whether Ferragni and campaign executives had committed aggravated fraud. This week, they confirmed their request for a custodial sentence.
While first-time offenders in Italy often receive suspended sentences, the pursuit of prison time represents a significant escalation in how influencer misconduct is being treated under criminal law.
At the same time, Ferragni’s business empire began to unravel. At its peak, her companies were valued at €75 million.
She held licensing deals across fashion and beauty, operated a talent agency, and managed multiple media platforms. By 2024, revenue had fallen from €14 million to €2 million, with losses exceeding €10 million. Stores in Milan and Rome were closed, investment deals collapsed, and a restructuring specialist was appointed as CEO.
Her personal life also came under strain. In early 2024, Ferragni separated from her husband, rapper Fedez, after six years of marriage. The former couple share two children together.
In early 2025, Italian podcaster Fabrizio Corona, who has claimed close ties to Fedez, alleged on his show that Ferragni had been unfaithful during the marriage and that Fedez had harboured feelings for another woman throughout their relationship.
Ferragni responded publicly via a series of Instagram stories, firmly denying any infidelity. She stated that she had remained in the marriage despite being aware of at least one betrayal by Fedez, and alleged that he ultimately left her in an effort to distance himself from the fallout of her legal scandal.
Ferragni further claimed that in December 2024, Fedez contacted her and admitted to having maintained a long-term affair dating back to 2017, saying he had considered calling off their 2018 wedding shortly before it took place but did not know how to do so publicly.
Fedez later addressed the controversy in his own Instagram statements, saying he had married Ferragni “with conviction” but acknowledged making serious mistakes.
As the pandoro investigation continued, regulators expanded their review to include other charity-linked promotions. Scrutiny turned to Easter-themed collaborations involving Ferragni-branded chocolate eggs connected to children’s charities, which were later incorporated into the wider regulatory case.
By the end of 2024, Ferragni had paid more than €3 million to resolve multiple consumer and charity-related disputes tied to both the pandoro and Easter-egg campaigns. This included a €1 million fine from Italy’s competition authority, a €1 million payment to the Turin children’s hospital, and a €1.2 million settlement with a children’s autism organisation.
She also compensated pandoro customers through a consumer advocacy settlement and donated €200,000 to a women’s charity. That same year, her company pledged to no longer pursue commercial initiatives tied to charitable fundraising, and Ferragni parted ways with her longtime manager.
In April 2025, she moved to regain control of her business, purchasing 99 per cent of her holding company through a reported personal investment exceeding €6 million.
Since then, Ferragni has made a careful return to public life. She has resumed select advertising partnerships, appeared on multiple magazine covers, and accepted limited fashion invitations in Milan and Paris. Over the summer, she confirmed a relationship with Giovanni Tronchetti Provera, heir to the family that controls Pirelli. Her social media presence now focuses primarily on commercial content and luxury travel.
Despite this, prosecutors argue that Ferragni’s digital reach significantly amplified the misleading nature of the Balocco campaign and that she benefited most from the promotion. Her former business manager and several manufacturing executives are co-defendants. A verdict is expected in the coming months, with proceedings projected to conclude in early 2026.
