Penalty Amount
$3,882,091
Consumers Affected
84,000
The FTC and 19 states settled with Kars-R-Us.com, Inc. and its operators for deceptive charity fundraising claims, where only 0.28% of over $45 million raised was used for breast cancer screenings. Operators face permanent fundraising bans and a $3.88 million monetary judgment.
Kars and its operators are permanently banned from fundraising and making misrepresentations, must substantiate all claims, and pay a monetary judgment of $3,882,091, with full amount payable if they misrepresent financial status.
In-house legal teams should review vendor contracts for clauses related to charitable fundraising representations, ensuring requirements for substantiating claims, prohibitions on misrepresentations, and audit provisions to monitor fund usage. Contracts should include clear terms on how donations are used and penalties for non-compliance, and consider bans on fundraising activities for violators.
Entity
Kars-R-Us.com, Inc.
Also known as: Kars-R-Us.com
Industry
OtherOfficial Press Release
https://portal.ct.gov/ag/press-releases/2025-press-releases/connecticut-joins-ftc-to-stop-deceptive-cancer-charity-fundraising-scheme
as filed complaint.pdf?rev=76402724d6b24ab3a8d92f8b14dcc862&
https://portal.ct.gov/-/media/ag/press_releases/2025/as-filed---complaint.pdf?rev=76402724d6b24ab3a8d92f8b14dcc862&hash=67C0C6A3B0BE0FBE63D5375C650EEF4E
as filed proposed order.pdf?rev=49d54e8acaf34d11be609f6ce8f8
https://portal.ct.gov/-/media/ag/press_releases/2025/as-filed---proposed-order.pdf?rev=49d54e8acaf34d11be609f6ce8f8967a&hash=67637D39E8A574E604945475406F4C6C
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Kars-R-Us.com, Inc. (Kars)"
"a total monetary judgment of $3,882,091"
"Kars claimed that vehicle donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings. But, in reality, only $126,815 or 0.28% of the more than $45 million that Kars raised was used to provide breast cancer screenings"
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$2.5B
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$225.0M
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$100.0M
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