Kars4Kids must stop broadcasting its widely known catchy jingle in advertisements across California after a judge found that the nonprofit violated the state’s false advertising and unfair competition laws.
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Judge Gassia Apkarian of the Superior Court of California in Orange County issued the May 8 ruling against Kars4Kids and its jingle featuring children dancing and singing. The decision came in a lawsuit filed by a California man who argued that the ad prominently features young children, even though some of the proceeds are directed toward programs benefiting Israel trips for elder teens.
“Money cannot ‘un-donate’ a car or restore the donor’s belief that they were helping a local, needy child,” the ruling says. “The evidence also shows that children, especially needy or underprivileged children, are not the recipients of the proceeds of the donations.”
Apkarian ruled that Kars4Kids may not use the “Kars4Kids” jingle, or any variation of it, in California unless the ads include “an explicit and audible disclosure of the organization’s religious affiliation.”
The nonprofit, which primarily funds a Jewish nonprofit organization and accepts donations of “cars, boats, or real estate,” now has 30 days, or until June 8, to stop broadcasting in California.
Apkarian found that the ads, which have been on the airwaves for more than 20 years, violated California’s false advertising law by disseminating public statements about the disposal of property — specifically vehicle donations — that were misleading by omission.
“We believe this decision is deeply flawed, ignores the facts and misapplies the law,” Kars4Kids said in a statement to NBC News. “It’s well known that we are a Jewish organization and our website makes it abundantly clear.”
The group added that the lawsuit was “nothing more than a lawyer-driven attempt to siphon off charitable funds for their own gain,” and said it expects to prevail on appeal.
The ruling stems from an August 2021 lawsuit filed by Bruce Puterbaugh, who alleged he donated a 2001 Volvo XC earlier that year to Kars4Kids after hearing the ad “over and over” on the radio. At the time, he expected his donation, made in California, to benefit children in California.
Puterbaugh later testified that after his donation, he learned “from a neighbor that the funds were directed to a Jewish organization in New York,” according to the ruling.
“That’s not what I wanted…I feel taken advantage of by the ad and information that was not there,” Puterbaugh said, according to the ruling.
He testified that the advertisement contained “nothing about specific religious affiliation,” and that, although he called the organization’s phone number, he never visited its website. He argued that it was because he is “not a computer person.”
As part of the ruling, Kars4Kids was also ordered to pay Puterbaugh $250, the car’s estimated value. Puterbaugh’s lawyers did not respond to NBC News’ request for comment.
According to its website, Kars4Kids has facilitated the donation of more than 500,000 cars. The organization also works closely with and funds another nonprofit, Oorah, which runs summer Orthodox camps in the tristate area and organizes annual trips to Israel for 17- and 18-year-olds.
The chief operating officer of Kars4Kids, Esti Landau, testified that Kars4Kids serves as Oorah’s primary funding source, sending approximately $45 million annually, or more than 60% of its total funds, the judge wrote. Oorah also spent $16.5 million to buy a building in Israel, the ruling says.
Kars4Kids is further prohibited from using images of “prepubescent children to solicit donations that support individuals who have reached the age of majority,” the ruling says.
The judge also wrote that Landau recognized that the short 30-second ads that have been running for two decades do “not say anything” about the charity’s specific nature.
“When a charity generates millions annually through a ‘jingle’ that conceals its primary religious and geographic focus, it creates an unfair playing field for local California charities that are honest about their missions,” the ruling says.
Oorah and Landau did not respond to NBC News’ request for comment.
