What does “Ferragni’s Law” do for philanthropy?

Five articles that address a regulatory loophole and, above all, prevent a repeat of cases involving influencer Chiara Ferragni. The Aid Bill, which many have dubbed the “Ferragni Law”, was approved by the Cabinet this morning.

The rule that defines the information that producers must provide regarding assistance, the methods and times of communication to the Guarantor Institution regarding market and competition, and sanctions, especially sanctions.

Higher fines and suspension of activity

Those who do not comply with the new rules will face fines ranging from 5,000 to 50,000 euros, depending on the severity of the violation. Significant numbers for sure, but they may not weigh much on the bottom line of digital entrepreneurs with millions of followers, like CityLife’s tenant. At the same time, to discourage “big” players, the decree provides for a suspension of activity that can last up to a year and – in this case, yes – cause serious economic damage to the influencer.

Transparency regarding amounts allocated to charities

Manufacturers or professionals must indicate on product packaging the recipient of the charity proceeds, the purposes for which the charity proceeds are intended, the total amount allocated to the charity if previously determined, and the sales price or percentage share of the sale price if not determined. The amount allocated to charity for each unit of product. In fact, this is the so-called “pandoro gate” situation, where the user is unaware of the size of the donation, which can lead them to think that the amount depends on the amount of items purchased. Manufacturers and professionals will also have to provide information in the context of commercial practices and, in particular, in commercial communications, including product advertising. The same obligation is expected for people who carry out product advertising activities.

Mandatory contact with agcm

Before offering the products for sale, the manufacturer or professional must provide the Competition and Markets Authority with information about the charity and the deadline for payment of the amount to the charity. The payment of the amount must be notified to the Institution within three months from the end of the period.

Sanctions will be published

As in other contexts, sanctions for any violations will be public. The Competition and Market Authority will publish the adopted enforcement measures in summaries in a specific section of the corporate website, on the website of the manufacturer or the professional benefiting from the sanction, in one or more newspapers, as well as in any other channel. Concerning the need to fully inform consumers, it means deemed appropriate at the expense of the manufacturer or professional. The costs of such communications will be borne by the producer or approved professional.

The more expensive the product, the higher the penalty

As stated, the administrative fine, which varies between 5 thousand and 50 thousand euros, will be determined separately for each incident, taking into account the list price of each product and the number of units offered for sale. More severe cases will see an increase of two-thirds, while minor cases will see a decrease of the same amount. Suspension of activity may last from one month to one year, in which case the repetition of the violation will be aggravated.

Source: Today IT

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