Whether you enjoy it or not, Kars4Kids’ jingles continue to echo across California, and listeners aren’t likely to escape them anytime soon.
A California appeals court has stepped in, temporarily halting a lower court’s decision that would have required charities to either take down or revise their advertisements. This allows Kars4Kids to keep airing their commercials while the legal dispute unfolds.
On June 4, the Fourth Appellate District approved Kars4Kids’ request for a writ of supercedia, putting a hold on the injunction issued by an Orange County judge.
The court decided to suspend the injunction and all related judicial activities until the appeal is resolved or the court decides otherwise.
This ruling is a significant win for Kars4Kids, especially as a lower court had previously determined that their advertisements were misleading to donors about the intended use of their donations.
“We’re pleased with today’s ruling that lets us keep our ads running while we pursue the appeal,” said spokesperson Wendy Kirwan in a statement to the California Post.
Kirwan emphasized that Kars4Kids supports a variety of children and teens, and uninterrupted advertising is crucial for funding its programs.
The legal conflict stems from a ruling on May 8 by Judge Gasia Apkarian of the Orange County Superior Court. She concluded that Kars4Kids had violated California’s false advertising and unfair competition regulations by not disclosing that donations mainly supported Orthodox Jewish programs linked to Oorah Inc., a New York and New Jersey-based organization.
The lawsuit originated from California resident Bruce Puterbaugh, who after hearing the charity’s advertisements, believed his vehicle donation would help underprivileged children in the state. Instead, the proceeds from his donated vehicle were channeled into Oorah-related initiatives, as per the judge’s ruling.
During court proceedings, Esti Landau, Kars4Kids’ COO, noted that funding Oorah’s programs was their organization’s “primary function.”
The court discovered that while about 25% of Kars4Kids’ revenue comes from California, the charity has limited significant programs in the state, aside from a backpack giveaway labeled as a “branding effort.”
Moreover, the court found that donations primarily benefited older teens, including those taking gap year trips to Israel, rather than younger children.
Evidence showed that in 2022, $16.5 million was spent on property in Israel, with another $437,000 allocated to “Middle East aid.”
Apkarian concluded that the charity’s advertisements were “misleading by omission” since they lacked transparency regarding the organization’s religious ties, the destination of donations, and the ages of beneficiaries.
According to Apkarian, “The public has a right to know the truth in the charity sector. When organizations generate significant revenue while not being upfront about their religious motives or where funds go, it creates unfair competition for local charities committed to their missions.”
The lower court’s ruling would have prevented Kars4Kids from airing ads in California unless they included specific audio disclosures detailing the charity’s religious context, funding direction, and beneficiary demographics. It also sought to restrict the portrayal of young children in these ads.
For now, however, those requirements are on hold.
Kirwan expressed the organization’s belief that the lower court’s findings were seriously flawed and stated they look forward to continuing their appeal.
Kars4Kids is a 501(c)(3) nonprofit based in Lakewood, New Jersey, focused on a vehicle donation program that primarily funds educational and recreational initiatives for Jewish children and families via Oorah. The charity has previously faced scrutiny; in 2009, it was fined in Pennsylvania and Oregon for misleading practices, and a 2017 investigation in Minnesota revealed that less than 1% of donations benefited local children.
