Published25. April 2024, 11:33
Misleading business practice: Pandoro Gate: First verdict weighs on Chiara Ferragni
The court in Turin classified the Pandoro campaign as a misleading business practice. Consumers believed they were supporting the Regina Margherita Hospital with their purchase.
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The court in Turin has classified Balocco‘s “Pandoro Pink Christmas” campaign as an unfair commercial practice.
The higher prices of the “Pandoro Pink Christmas” compared to the standard product were judged to be misleading.
Despite the court decision against Balocco and Chiara Ferragni’s practices, Balocco has not yet been ordered to pay damages.
A first court decision has been made in the Pandoro Gate involving the entrepreneur Chiara Ferragni (36). The verdict weighs heavily on the Italian.
As the news agency Ansa reports, the court in Turin judged Balocco’s “Pandoro Pink Christmas” campaign to be an unfair business practice. The message that by purchasing the baked goods you were supporting the Regina Margherita Children’s Hospital in Turin was “found to be a misrepresentation of the charity initiative.”
Price difference of the Pandoro was misleading
The judgment of the first civil chamber and the judge Dr. Gabriella Ratti said that Balocco’s advertising methods and business practices resulted in consumers being deceived. “Even the significant price difference of the ‘Pandoro Pink Christmas’ compared to its equivalent classic ‘Pandoro Balocco’ apparently helped to convince consumers that the higher price represents a direct contribution to the charity project.”
Chiara Ferragnis Spendeskandal
In 2022, Chiara Ferragni promoted a special edition of the Pandoro brand Balocco called “Pandoro Pink Christmas”. There was a label from the influencer on each package and the pastries cost nine euros instead of 3.70 euros. The food company Balocco promised to donate part of the proceeds to the Regina Margherita Children’s Hospital, because the cancer department needed a new device to treat tumors. But as the Italian cartel office found out, Balocco transferred 50,000 euros to the hospital long before the campaign – completely independent of the actual sales figures. Ferragni is said to have used similar tricks with an Easter egg campaign that was marketed through the company Dolci Preziosi. Here too, donations flowed regardless of the number of eggs sold – contrary to what Chiara told her fans.
Balocco comments on the verdict
The special edition cost over twice as much as the normal Pandoro. The price could be set arbitrarily by the free market. “The business practice in question not only violated the professional duty of care, but was at least likely to significantly distort the economic behavior of the average consumer with regard to the product.” In summary, Balocco violated Article 20, paragraph 2, Articles 21 and 22 of the Consumer Protection Law.
The candy company commented on the verdict in a statement. “The judgment of the Civil Court of Turin has rejected the request of some consumer associations (Codacons, Adusbef and Assourt) to pay one million and 500,000 euros in damages within the framework of the ‘Pandoro Pink Christmas’ campaign.” Balocco has not yet been made to pay for the donations scandal.
“The verdict opens the door to compensation.”
Codacons
The consumer association Codacons is nevertheless pleased with the court decision. “The ruling opens the door to compensation for those who were deceived by the messages spread by the company and Chiara Ferragni,” they wrote in a statement.
You are now starting an initiative. “Codacons has once again decided to act as a civil party to claim damages for the broad interests it represents.” People who have bought a Balocco-Pandoro “Pink Christmas” can contact them using the online form and appear free of charge as a victim in the Milan public prosecutor’s investigation.
Independently of the Turin court, the Milan public prosecutor’s office is investigating Chiara Ferragni and Balocco for serious fraud. The cartel office has already punished Chiara with a fine of 1.5 million euros. The influencer has lodged an appeal against this. She has not yet commented on the latest verdict.
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