Tightening up on influencer charities, the 'Ferragni Bill' arrives in the House

What is the status of the law on the charitable activities of influencers? All trace of what had become known in the media as the Ferragni bill had been lost after its approval by the Council of Ministers last January. The text has now reached the Chamber of Deputies, for examination by the Productive Activities Commission with rapporteur Gianluca Caramanna.

The bill had been presented to the Council of Ministers by the Ministry of Enterprise and Made in Italy in the wake of the case that hit the influencer Chiara Ferragni following the Antitrust Authority's fine of 1.075 million for 'unfair commercial practice' for sales of Balocco 'Pink Christmas' pandoro that were supposed to contribute to a donation for the Regina Margherita hospital in Turin.

To recapitulate, this is a measure ('Provisions on the destination of proceeds from the sale of products') consisting of six articles that aims to ensure the reliability of the business practices of manufacturers and professionals in the event that part of the proceeds from the sale of products is earmarked for charitable purposes. Here are the contents.

Article 1 identifies the recipients of the charitable activity covered by the law. It specifies that the provisions do not apply to the promotion, sale or supply of products to consumers by non-commercial entities unless they are directly or indirectly owned by the producers or professionals involved. Article 2 introduces obligations on adequate information for consumers on the destination of proceeds in cases where a share of the proceeds is donated to charity. Producers will have to indicate on the packaging, in addition to the price information, also the recipient of the part donated to charity, the purpose of use, the percentage share of the price or the amount per unit of product that will be donated. This information can also be provided through the affixing of a paper or adhesive label on the packaging which, with adequate graphic evidence, provides the indications clearly and simply. Finally, the indications must also be provided by manufacturers and professionals in commercial communications, including product advertising.

Article 3 lays down the obligation to provide this information to the Antitrust Authority as a preventive measure, i.e. before starting the sale. Article 4 dictates the discipline of sanctions: those who violate the rules will be subject to fines of between five thousand and fifty thousand euros, unless the act constitutes a crime or an unfair commercial practice within the meaning of the Consumer Code. The penalties, in particular, will be commensurate with the list price of each product and the number of units offered for sale.