"Orange County Superior Court Judge Gassia Apkarian ruled on May 8 that Kars4Kids had violated the state's False Advertising Law and Unfair Competition Law, according to Fox 11. Apkarian found that donors' contributions are not primarily used to benefit underprivileged children, but rather to pay for older teenagers to participate in gap-year trips to Israel, adult matchmaking services and other family programming."
"The jingle, sung by a group of young children, had been played over state radio channels for 30 years: "1-877-Kars4Kids. K-A-R-S Kars for Kids. 1-877-Kars4Kids. Donate your car today." Bruce Puterbaugh, a California resident in his 70s, said in his lawsuit that he believed donating his car would help fund unprivileged children locally."
"Court documents and testimony revealed that Kars4Kids sends over 60% of its funds, about $45 million per year, to Oorah. The outreach organization spent $437,000 on "Middle East outreach" and $16.5 million on a building in Israel in 2022, the documents showed."
"And though California donations amount to 25% of Kars4Kids' national vehicle intake, the company does not operate a functional program in the state. Instead, its presence in California consists of a branded backpack giveaway of"
A California judge barred Kars4Kids’ recognizable car-donation jingle after ruling the advertisement deliberately misled listeners about the organization’s mission. The jingle had been broadcast on state radio for decades and encouraged donations by implying support for unprivileged children locally. A donor alleged that a $250 donation was used by Oorah Inc., an Orthodox Jewish outreach organization based in New Jersey, rather than for local children. The court found contributions were not primarily used to benefit underprivileged children, but to fund gap-year trips to Israel, adult matchmaking services, and other family programming. Court documents indicated Kars4Kids sends over 60% of its funds to Oorah, including large spending on Middle East outreach and a building in Israel, while California operations were limited to branded giveaways.
#false-advertising #charitable-fundraising #rico-litigation #car-donation-programs #consumer-protection
Read at The Mirror US
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