Top Italian influencer Chiara Ferragni has expressed regret for deceiving customers about Christmas cake purchases.
With nearly 30 million Instagram followers, Ms. Ferragni was fined €1.075 million (£927,000) for her false claims that sales of a "designer" pink pandoro would contribute to funding for a children's hospital in Turin.
The competition watchdog discovered that the cake's maker had donated funds to the hospital months prior to its release.
The 36-year-old Ms. Ferragni has committed to provide the Regina Margherita hospital €1 million.
She admitted that she had made a "mistake in good faith... to link a commercial activity with a charitable one" in a statement shared with her fans.
She declared she will file an appeal against the AGCM antitrust authority's decision and the "disproportionate and unjust" penalties, looking like she was about to cry.
The "Pandoro Pink Christmas" that was marketed as being created by Ms. Ferragni cost more than €9 last year, which is more than twice as much as the traditional unbranded pandoro that the Balocco company makes.
Last Friday, the watchdog discovered that consumers who purchased the pandoro cake with the Ferragni trademark had been duped into believing that their purchases would help the hospital buy medical supplies for the treatment of youngsters with osteosarcoma and Ewing's sarcoma.
Anger surrounding the case prompted Prime Minister Georgia Meloni to speak out at the weekend against influencers who promoted "expensive cakes that make people believe they are charitable," although she did not mention Ms Ferragni by name.
One commentator said now that the "do-gooder" pandoro with pink icing sugar had been exposed as junk, Italians were wondering where that left "the princess of influencers as well as queen of social media".
Consumer group Codacons said it would launch legal action seeking compensation for anyone who had bought the cake thinking they were giving money to the Turin children's hospital. It said it was filing complaints with 104 Italian prosecutors alleging aggravated fraud.
The AGCM watchdog said false advertising had exploited consumers' "sensitivity to charitable initiatives, especially those aiding children with serious illnesses". This violated Italy's consumer code and constituted unfair commercial practice, it added.
It penalised the cake's maker, Balocco, €420,000 and hit two businesses that oversee Chiara Ferragni's rights and trademarks with fines over €1 million.
It stated that months prior to the cake being put on sale, Balocco had donated €50,000 to the hospital, and the corporation had paid Ms. Ferragni's two companies around €1 million for the advertising.
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