Chiara Ferragni, an Italian fashion influencer, has been acquitted of aggravated fraud in a high-profile case linked to the sale of a charity Christmas cake. The verdict brings a two-year-long legal saga to a close, during which Ferragni was accused of misleading consumers about a designer pink pandoro cake and other products intended to raise funds for a children's hospital.

In a fast-track trial in Milan, the judge found Ferragni and two co-defendants not guilty. If convicted, she could have faced a significant jail term. After the trial, Ferragni expressed her relief, telling reporters, It's the end of a nightmare that lasted two years.

The controversy, termed 'pandorogate', ignited in 2022 when consumers believed that the proceeds from the special edition pink pandoro would support a charity for a children's hospital in Turin. However, it was revealed that while the cake's producer, Balocco, had made a one-time donation to the hospital prior to the launch, the subsequent sales did not contribute any further funds.

With 28 million followers on Instagram, the influencer had initially generated €1 million from her endorsement of the cakes. Following public backlash, she pledged to donate an equivalent amount to the hospital. The scandal prompted an investigation and a €1 million fine from Italy's competition authority for misleading advertising practices.

Addisitionally, the case involved Ferragni's Easter egg promotion, which led to her agreeing to pay €1.2 million to a charity for misleading customers.

While prosecutors had sought a sentence of one year and eight months' imprisonment for Ferragni, the court found no aggravation in the case, especially after a consumer group withdrew its complaint. As part of a prior agreement, Ferragni had committed to compensate consumers and has supported various charitable causes.

Despite emerging innocently from the legal turmoil, the effects on her brand and personal life have been adverse; her marriage to rapper Fedez ended last year. The scandal has also prompted stricter regulations for Italian influencers concerning transparency in fundraising initiatives.