Milan. Italian influencer and entrepreneur Chiara Ferragni was cleared on Wednesday of criminal aggravated fraud charges in the high-profile Pandorogate case, a scandal that sparked nationwide debate in Italy over influencer marketing and charitable transparency.

A Milan court judge ruled that the charges related to Ferragni’s alleged promise to donate proceeds from the sale of a limited-edition pink Christmas pandoro cake to a children’s cancer charity were not admissible in criminal court. Prosecutors had sought a 20-month prison sentence for the 38-year-old fashion and beauty icon.

The case stemmed from a collaboration between Ferragni and Italian pastry company Balocco, which marketed special-edition Christmas cakes in 2022 and 2023, followed by luxury Easter chocolate eggs. Promotional material suggested that sales would support pediatric cancer research at the Regina Margherita Children’s Hospital in Turin.

The controversy erupted after an investigative report revealed that Balocco had made a one-off €50,000 donation to the hospital prior to the sponsorship agreement, while Ferragni reportedly received a €1 million commercial fee. It later emerged that product sales profits were not directly tied to charitable donations.

“Everything we did was in good faith. No one benefited personally,” Ferragni told the court, acknowledging what she described as a “communication error.”

Neither Balocco, the hospital, nor Ferragni’s former husband — rapper Fedez — faced criminal charges. However, the scandal severely damaged the couple’s multimillion-euro media and business empire and coincided with the breakdown of their marriage.

Dubbed Pandorogate, the affair became a political issue and prompted new legislation promoted by Prime Minister Giorgia Meloni aimed at regulating influencer advertising practices. Despite the criminal acquittal, Ferragni and her companies paid €3.4 million in compensation, reimbursed consumers, and returned sponsorship fees.

While the legal case has now concluded, the scandal continues to shape discussions around ethics, transparency and accountability in digital advertising across Europe.