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LOS ANGELES () — A California Superior Court judge in Orange County has ruled that Kars4Kids’ long-running advertising jingle violates the state’s False Advertising Law and ordered the nonprofit to stop airing the ads in their current form beginning June 8.
The decision targets the charity’s widely known commercials – including the familiar “1-877-Kars4Kids” refrain – which have been the subject of pop-culture jokes for years.
But the ruling stems from a lawsuit filed by an Orange County man who said he donated a car believing the proceeds would help underprivileged children across the country.
According to the judge, the organization’s ads misled donors by implying that funds supported needy children broadly, when the vast majority of money raised by Kars4Kids was instead directed to another nonprofit that funneled money to Orthodox Jewish programs in New York, New Jersey and the Middle East.
Legal analyst Neama Rahmani said the court focused on how the charity portrayed its mission.
“When you’re running ads with young kids and the funds are going to older kids in another state and maybe even another country that’s a problem,” he said.
Attorney Anthony Graham, who represented the plaintiff, said the ruling required proving intent.
“We have to show that they knowingly and intentionally misled the public and it’s not an easy thing to do, but we did it,” he said.
In a written statement, Kars4Kids called the ruling “deeply flawed” and said its website makes clear that it is a Jewish organization.
“We believe this case was nothing more than a lawyer-driven attempt to siphon off charitable funds for their own gain. We expect to win on appeal because the law and the facts are clearly on our side,” said Wendy Kirwan, the group’s director of communications.
The charity is also facing a federal class-action lawsuit that could carry significant financial consequences, said Graham.
“You have to be looking at least ($400 million) to $500 million,” he said.
Legal experts say the organization could face further scrutiny. If regulators or prosecutors take interest, Kars4Kids executives could face potential criminal investigations.
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