Kars 4 Kids television commercial still
ORANGE COUNTY — A judge has put the brakes on the familiar “1-877-Kars4Kids” jingle, concluding that the long-running commercial is deceptive because it creates false impressions about who benefits from car donations.
Superior Court Judge Gassia Apkarian issued the decision on May 8, siding with plaintiff Bruce Puterbaugh, who argued he was misled when he donated a non-operating 2001 Volvo XC to the Kars4Kids nonprofit group. Puterbaugh assumed the donation would benefit underprivileged children in California, his lawsuit alleged.
Apkarian found that Kars4Kids, a Jewish organization, provided funds to a sister charity, Oorah, and that donations help to promote Jewish heritage and summer camps in New York and New Jersey. The group’s fundraising also benefits Middle East outreach and services for youths who are 17 and 18 years old, the judge’s decision states.
“The court finds the Kars4Kids ‘jingle’ creates a false sense of a universal, secular and local charity,” Apkarian said. “The “Kars4Kids” name, when coupled with an advertisement that ‘does not mention anything’ about its specific mission … is likely to deceive the public. It improperly narrows the perceived beneficiary class to ‘kids’ to elicit emotional and financial responses, while diverting funds to a much broader religious and familial social-service network.”
Kars4Kids is planning an appeal of the decision, which includes an order enjoining Kars4Kids from airing the “non-compliant” ads in California starting in early June.
“If the ads continue, thousands of California donors will continue to surrender property under the false impression that they are supporting local, secular or underprivileged ‘kids,’” Apkarian said. “This constitutes a massive, ongoing transfer of assets based on a fraudulent omission.”
The judge concluded that the ad violates the California False Advertising Law and the Unfair Competition Law.
But in a statement on its website, Kars4Kids stressed that the plaintiff was given the opportunity to have the donated car returned to him so he could donate the vehicle to another charity. Puterbaugh repeatedly declined the offer, the nonprofit reported.
Instead, Puterbaugh opted to sue.
A Kars4Kids spokesperson stressed that Oorah provides year-round educational, youth development and mentoring programs, focusing on Jewish youth and their families. Oorah provides financial assistance to 2,200 preschool, elementary and high school students nationwide and in Canada, as well as extracurricular programs for children 8 to 15 in 20 states.
And hundreds of children 10 to 17 receive free tutoring and mentoring in states beyond New York and New Jersey, including California, the spokesperson said.
A source familiar with the legal proceedings told the Southern California Record that Kars4Kids is different from other charities because it provides the donor with a service (free towing) as well as a tax deduction.
“The service is designed so that if a car breaks down on the side of a highway and it’s a junker, you can get rid of it without paying for a tow truck,” the source said. “People get a service in return for something. And the evidence demonstrated that’s why most people donate to Kars4Kids.”
The trial did not produce any evidence that donors cared about the religious affiliation of the recipients benefiting from Kars4Kids / Oorah programs, according to the source, and funds did go to programs benefiting whole families or older youths because the programs have a holistic approach to helping children.
In her ruling, Apkarian said she found “critical flaws” in the plaintiff’s expert witness’s data showing the ads were misleading due to omissions, but ultimately the judge sided with the plaintiff’s position.
To be compliant with California law, the Kars4Kids commercial would have to contain a disclosure of religious affiliation, the geographic location of most of the beneficiaries, the age of the beneficiaries, and whether the charity’s focus is on children, families or both, according to the court ruling.
