California Judge Bars Kars4Kids Ads After Finding They Misled Donors

A California judge has ordered Kars4Kids to stop broadcasting its radio advertisements in the state after finding that the ads violated laws against false advertising and unfair competition. Judge Gassia Apkarian of the Superior Court of California in Orange County issued the ruling on May 8. The decision followed a civil trial that examined how the charity uses proceeds from donated vehicles.

The lawsuit was filed by Bruce Puterbaugh, a California cabinetmaker who donated a Volvo in 2021 after hearing the ads repeatedly. He testified that the advertisements led him to believe proceeds would benefit underprivileged children in California and elsewhere.

After the donation, Puterbaugh learned the funds primarily supported Oorah, a New Jersey-based organization that runs programs including adult matchmaking, trips to Israel, and summer camps. The judge found that the only California program tied to Kars4Kids was a promotional backpack giveaway.

Details Kars4Kids, based in Lakewood, New Jersey, stated it plans to seek a stay of the ruling and appeal the decision. The organization said the ruling is flawed and misapplies the law. The judge noted that Kars4Kids sends about $45 million annually, or 60 percent of funds raised, to Oorah.

Another 30 percent covers advertising costs and 6 percent goes to administration. Oorah has also spent $16.5 million on a building in Israel. The charity was ordered to pay Puterbaugh $250, the fair market value of his donated vehicle. The ruling gives Kars4Kids 30 days to cease broadcasting the ads in California.