An Italian fashion influencer has been acquitted of aggravated fraud, bringing a long-running scandal involving a charity Christmas cake to an end.

Chiara Ferragni had been accused of misleading consumers by promoting the sale of a designer pink pandoro and Easter eggs, claiming that the proceeds would benefit a children's hospital and charity.

After a fast-track trial in Milan, a judge ruled that Ferragni and two associates were not guilty, marking a significant moment after the influencer faced potential jail time.

Ferragni, 38, expressed her feelings of relief, stating, 'the judgment marked the end of a nightmare that lasted two years'.

The controversy, which became known as 'pandorogate', originated from the sale of pink Christmas cakes in 2022, promoted as benefiting a children's hospital in Turin. However, it was later revealed that the producer had made a one-off donation of €50,000 prior to the cake launch.

Ferragni's promotion led to her companies earning €1 million, a sum she pledged to donate to the hospital.

The scandal sparked a formal investigation, resulting in a €1 million fine from Italy's competition authority over misleading marketing practices. She also reached an agreement to pay €1.2 million to a children's charity due to similar allegations concerning Easter egg sales.

Prosecutors sought a sentence of one year and eight months in prison, but the judge found no basis for aggravated fraud, especially after a consumer group withdrew its original complaint. Ferragni had cooperated with consumer protection organizations, agreeing to compensate affected consumers and support initiatives against gender violence.

Saying, 'We are all moved,' Ferragni highlighted the emotional toll of the past two years and affirmed her faith in the justice system.

Despite her acquittal, the scandal has adversely affected Ferragni's brand and personal life, including her marriage to rapper Fedez. The case has also triggered new regulations for influencers in Italy, enforcing greater transparency in fundraising.