The story of "Pandorogate" – the marketing scandal that befell Chiara Ferragni, one of the most prominent influencers in the world, is a flashing warning sign for anyone who operates at the intersection of business, communication and personal branding. In Israel as well, in May and June, 2025, very severe affairs have been exposed in the press. In one of which it was exposed by Walla magazine in May 2025, that Israel Finance Minister Bezalel Smotrich launched a state-funded social media influencers campaign to glorify his name (without such influencer disclosing that they are paid). About two weeks later, the same media exposed that the Minister of Transportation, Miri Regev, also ran a similar campaign to glorify her name.
At the center of the Pandorogate affair is a marketing campaign for an Italian holiday cake in cooperation with Balocco, which was marketed to the public under the clear impression of the followers that the purchase of the product constitutes a contribution to a hospital for children with cancer. In practice, the donation was made ahead of time, regardless of sales, while the main campaign revenues flowed into Ferragni's pocket and the companies under her control. In the wake of the affair, in 2024 Italy passed legislation that requires influencers with large audiences to disclose in detail any collaboration that presents itself as a donation, including the identity of the beneficiaries, the amounts of the donation, and the manner in which such are calculated. In addition, the Italian authorities imposed a personal fine of Euro 400,000 Ferragni and an additional fine of EURO 675,000 on her companies, and a criminal investigation was opened that led to indictment for fraud under aggravated circumstances - an offense for which the penalty can reach up to five years imprisonment. Alongside all this, naturally, the involved also endured and expected blow to public trust in them, a sharp decline in the brand value and loss of commercial agreements. Will criminal proceedings also be initiated in Israel and fines be imposed on those involved in the affair of the publications of ministers Smotrich and Regev, and the social media influencers involved, such as Yinon Magal, Moshe Kursia, Yael Bar Zohar, Maya Dagan, Michal HaKatana (Michal Weizmann), Guy Hochman, Itay Herman ("The Chaser"), Kobi Maimon, Simcha Guetta?
The Israeli Consumer Protection Law not only prohibits misleading consumers, but also prohibis covert advertising. The law states that an advertisement that may lead a person to assume that what is stated in it is not an advertisement will be deemed misleading advertising, even if the content of the advertisement itself is not misleading. Thus, influencers who actually carry out an advertisement are obligated to inform about it in order to prevent a situation in which consumers may assume that it is not a marketing message. The definition of "advertisement" under Israeli law is very broad and also includes "advertising that is financed or supported by a commercial entity related to the subject of the advertisement, or for which the advertiser has received, in advance or retroactively, payment or any other benefit, or an undertaking to receive such from such a commercial entity." Thus, for example, in the Bar Refaeli case, the Court found that a discount received by a celebrity is in fact income for all intents and purposes. Admittedly, not any case in which a web influencer receives a free product turns each upload by the influencer of the use of the product into an advertisement, but certainly if such influencer receives payment for it, he must disclose it. The cause of action under the Consumer Protection Law is civil and criminal and the law also imposes liability on corporate officers, who are to supervise and do everything possible in order to prevent a breach of the law. Moreover, the law also explicitly states that if a violation was committed by any company employees, the presumption is that the employer did not fulfill its duty to supervise.
"Pandorogate" is not a specific case, but rather a wake-up call for anyone who operates in an era where reputation is a currency and the legal liability begins long before a contract is signed. No less than a consumer question, it is a question of public trust, the boundaries of marketing, and the power of the law to enter the areas of "emotions." Either way, it is vital when conducting an online campaign to be accompanied by lawyers with extensive experience in the field of social media and the Internet.