A PYMNTS Company

Italian Watchdog Probes Cake Makers

 |  June 14, 2023

Italy’s antitrust authority is investigating an Italian food company known for producing pandoro Christmas cakes for possible unfair commercial practices in its marketing.

The antitrust authority conducted a search of Balocco food company’s offices in relation to the ongoing process, according to a statement released on Wednesday.

The antitrust authority has initiated an investigation into Balocco S.p.A. Industria Dolciaria for potential unfair commercial practices related to the “Chiara Ferragni and Balocco together for the Regina Margherita Hospital in Turin” initiative.

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Chiara Ferragni, who is 36 years old, currently holds the title of Italy’s leading fashion influencer and boasts a following of 29 million on Instagram.

The antitrust authority claimed that the purchase of Ferragni-branded Balocco Pandoro may have given consumers the impression that they were supporting bone cancer research donations at a Turin hospital.

The authority claimed that Balocco had predetermined a donation amount for the hospital as part of their marketing campaign, independent of their pandoro sales.