Judge Bans Kars4Kids from Advertising in California

A judge has decided that Kars4Kids is not allowed to advertise in California anymore, concluding that the charity breached false advertising and unfair competition laws. The ruling came after it was found that donations were used to fund a teenager’s trip to Israel and to purchase a $16.5 million property there.

In 2021, Bruce Puterbaugh initiated a lawsuit against Kars4Kids, saying he felt “taken advantage of” after discovering that his donations wouldn’t support “underprivileged children across America.” He had donated his old car, influenced by the charity’s radio ads, which he had heard “many times.” Puterbaugh considered himself a “philanthropist,” believing his contribution would genuinely help children in need, particularly in California.

However, after making the donation, he found out that the funds were directed towards Woola, a company focused on promoting Jewish heritage and summer camps in New York and New Jersey.

In what the judge described as “shockingly candid” testimony, Estee Landau, the chief operating officer of the organization, admitted that their priorities did not center around aiding the nation’s most disadvantaged children.

According to court documents cited by CBS News, Landau testified that Kars4Kids was the main funding source for Woola. She confirmed that the donations financed a “matchmaking program” for youth and trips to Israel for those aged 17 and 18. Additionally, she mentioned that the organization had invested $437,000 in aid to the Middle East and used those funds to acquire the $16.5 million building in Israel.

The court noted that the advertisement was misleading due to omissions, stating that the combination of the Kars4Kids name and the advertisement was “likely to deceive the public.”

Kars4Kids opposed the ruling and expressed confidence in prevailing on appeal, labeling the case as “an attempt by lawyers to siphon off charity funds for their own gain.”

The spokesperson emphasized, “We believe this decision is deeply flawed, ignores the facts, and misapplies the law. It is well known that we are a Jewish organization, and our website makes that abundantly clear. Visit our site and judge for yourself.”

Puterbaugh mentioned that he wasn’t very tech-savvy and opted to call the charity’s phone number as instructed in the ad. The judge supported his argument, stating that “the consumer acted reasonably by calling the number rather than cross-referencing the website.”

Following the ruling, Kars4Kids is required to pay Puterbaugh, and the charity has 30 days to cease its advertisements within the state.