Operators of a vehicle donation program face bans and financial penalties after misleading donors.
The Federal Trade Commission (FTC), joined by 22 agencies from 19 states, has halted a charity fundraising operation that allegedly misled thousands of U.S. donors. According to the complaint, Kars-R-Us.com, Inc. and its operators raised more than $45 million between 2017 and 2022 on behalf of the United Breast Cancer Foundation, Inc. (UBCF), but less than one percent of those funds went to breast cancer screenings.
“This case should send a strong message to fundraisers that the FTC will take action if they misrepresent the truth and exploit the kindness of generous donors for their own gain,” said Director Christopher Mufarrige of the FTC’s Bureau of Consumer Protection.
Under a proposed settlement, one of the operators will be permanently barred from fundraising, while the organization is prohibited from making false or unsubstantiated claims in connection with fundraising or sales. The order also requires substantiation of future fundraising claims and imposes a $3.88 million judgment.
As the Lord Leads, Pray with Us…
- For Chairman Ferguson and members of the FTC as they assess the trade practices of legitimate businesses.
- For Director Mufarrige as he seeks to prevent perpetrators from scamming and defrauding American consumers.
Sources: Federal Trade Commission
