Kars4Kids faces an imminent California ban on its advertisements after a court ruling found its car-donation jingle violated false advertising and unfair competition laws. The ruling determined that the charity did not properly disclose that most donated money supports a program for Orthodox Jewish teenagers in New York and New Jersey. The court ordered Kars4Kids to pay $250 to the plaintiff and issued an injunction requiring express, audible disclosure in any California advertising. A 30-day grace period allowed continued airing of noncompliant ads, but changes are required before the ban takes effect. International media coverage prompted the Canadian Broadcasting Corporation to remove Kars4Kids ads from its airwaves.
"For years, Kars4Kids has used a famous ( or infamous) jingle to promote its charitable efforts, offering people a quick and easy way to donate an unused car to support the charity, which in turns helps children. But back on May 8, Orange County Superior Court Judge Gassia Apkarian ruled that the charitable organization had violated false advertising and unfair competition state laws in a case originally brought forth by California resident Bruce Puterbaugh in 2021. The judge found that Kars4Kids' jingle, which is played frequently on local radio and TV airwaves, failed to properly disclose that most of the money raised from the charity goes to a program for Orthodox Jewish teenagers in New York and New Jersey."
"Apkarian's ruling said Kars4Kids had to give Puterbaugh the $250 he was owed and also included an injunction that Kars4Kids can no longer advertise in the state unless there's an "express, audible disclosure" of the charity's religious affiliation, the region of where the money goes and a more accurate age range of the recipients. The judge gave Kars4Kids a 30-day grace period to remove or change its noncompliant advertisements, which is why people have continued to hear the jingle on the airwaves."
"The ruling received international media coverage and has even led the Canadian Broadcasting Corporation, Canada's national broadcaster, to proactively pull Kars4Kids ads off its airwaves. A spokesperson cited the "developments regarding this charity" in a story on its website explaining the decision. The coverage may be why Kars4Kids has so forcefully blustered at the ruling publicly. The charity posted a 770-word statement on its website about the ruling, calling the case "nothing more than a lawyer-driven attempt to siphon off"
#false-advertising #charitable-fundraising #court-injunction #religious-affiliation-disclosure #advertising-compliance
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