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Charity Sales: Stop the Misleading Destination of Proceeds. Measure Under Consideration by the Chamber

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Stop deceived consumers on 'actual destination of money donated to charity and resulting from the promotion and sale of certain products. To the Chamber, in the Productive Activities Commission, in fact begins theexamination of a government bill to regulate advertising and commercial practices implemented by producers and professionals in relation to the promotion, sale or supply to consumers of products whose proceeds are partly allocated to NGOs, churches, the third sector, universities, research centres. And this is precisely to ensure the protection of consumers and ensure greater transparency.

Obligation to provide adequate information

In essence, consumers must receive from producers and professionals aadequate information on destination of a portion of the proceeds of the sale of a product. And in order to ensure the transparency of such information, it is expected that producers and professionals must report on the packaging of the products the relative indication:

  • to the subjects receiving part of the proceeds
  • the purposes for which the portion of the proceeds allocated to the indicated subjects will be used
  • the percentage of the selling price or the amount allocated to the same subjects, for each unit of product

These informations may be provided by placing a paper or adhesive label on the packaging which, with adequate graphic evidence, provides the required information clearly and simply.

Possible sanctions

No sanctions are missing for those who evade these provisions. In fact, the Competition and Market Authority is responsible for imposing sanctions for ascertained violations. Unless the act constitutes a crime or a unfair commercial practice pursuant to the consumer code, anyone who violates the provisions set forth is subject to pecuniary administrative sanction from 5.000 euros to 50.000 euros.

Not only that. The Competition and Market Authority publishes the sanctioning measures adopted in its weekly bulletin and can impose the obligation to publish – at the expense of the sanctioned subject – in one or more daily newspapers and any other means appropriate to the need to fully inform consumers. A share equal to 50% of the proceeds of the administrative pecuniary sanctions collected will be intended for solidarity initiatives

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