A California judge has banned Kars4Kids commercials from the state’s airwaves, ruling that the charity’s advertisements violate false advertising laws.
The decision, issued by Judge Gassia Apkarian in Orange County, states that the ads mislead donors by omitting crucial details about the organization’s religious affiliation and the true beneficiaries of its funds.
The case originated from a lawsuit filed by California retiree Bruce Puterbaugh, who donated his car after hearing the catchy Kars4Kids jingle. He later discovered that the funds did not support underprivileged children in California, as he believed, but instead went to Oorah, a New Jersey-based Jewish outreach nonprofit. This organization uses the funds for gap-year trips to Israel, adult matchmaking, and other activities not disclosed in the ads.
Judge Apkarian’s ruling requires Kars4Kids to cease broadcasting its current ads in California within 30 days unless they include an “express, audible disclosure” of the charity’s religious affiliation, the geographical location of its primary beneficiaries, and the age range of those it serves. The ruling also prohibits the use of young children in the ads to prevent further misleading impressions.
Kars4Kids’ Chief Operating Officer Esti Landau admitted during the trial that the charity’s primary function is to fund Oorah, with no substantial programs in California beyond a branding exercise. The court found that 25% of Kars4Kids’ revenue comes from California donors, yet the funds primarily support activities outside the state.
The ruling highlights the importance of transparency in charitable advertising. As noted by Judge Apkarian, “The public interest is served by transparency in the ‘charity marketplace.'” The decision ensures that competition for charitable donations is based on truth rather than catchy but deceptive jingles.
Kars4Kids has expressed its intention to appeal the ruling, arguing that the decision is flawed and misapplies the law. The organization maintains that its mission and affiliations are clear on its website and that its programs benefit children and families nationwide.
This is not the first time Kars4Kids has faced legal challenges. In 2009, Pennsylvania and Oregon fined the charity for misleading solicitation practices, and in 2017, an investigation by Minnesota’s attorney general found that less than 1% of donations went to local children.
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