Italy enacts law for transparency in social media charity disclosures

By Baris Seckin

ROME (AA) - Italy’s right-wing coalition government approved a bill to increase transparency in charity and aid activities of social media influencers, who have become a phenomenon on social platforms.

According to the proposal accepted at a Cabinet meeting led by Giorgia Meloni, the head of government, influencers engaged in charity and aid activities could face severe penalties and sanctions if they fail to be transparent.

The proposed law, designed to ensure greater transparency in charitable activities, mandates the disclosure of almost every detail, down to the address of the charitable organization and the amount received.

Additionally, the Italian Competition Authority (Antitrust) will enforce penalties ranging from €5,000 to €50,000 ($5,400 - $54,000) for those who do not comply with the new rules in each case.

In case of repeated violations, the respective influencer may face a one-year suspension of activities.

Both chambers of parliament must approve the bill before it becomes law.

- Chiara Ferragni’s involvement in Christmas cake scandal

The bill came after the Italian Competition Authority imposed a fine of more than €1 million on companies of globally renowned Italian social media influencer Chiara Ferragni in December.

The fine resulted from deceptive and unfair commercial practices where Ferragni’s companies collected money for charity by selling a Christmas cake known as “Pandoro” during the Christmas season in Italy.

It was revealed that the product, priced at €3.5, was sold for €9 under the name “Pink Christmas Pandoro,” with the claim that proceeds would go toward funding the treatment of children with bone cancer in a hospital in Turin. It was later discovered that despite how it was advertised in the campaign, the income was kept from the hospital.

After the incident gained public attention, Chiara Ferragni posted a video apologizing and revealing a donation of €1 million to the hospital.