Penalty Amount
$3,882,091
Consumers Affected
84,000
The FTC and 19 states settled with Kars-R-Us.com, Inc. and its operators for deceptive charity fundraising claims, where only 0.28% of over $45 million raised was used for breast cancer screenings. Operators face permanent fundraising bans and a $3.88 million monetary judgment.
Kars and its operators are permanently banned from fundraising and making misrepresentations, must substantiate all claims, and pay a monetary judgment of $3,882,091, with full amount payable if they misrepresent financial status.
In-house legal teams should review vendor contracts for clauses related to charitable fundraising representations, ensuring requirements for substantiating claims, prohibitions on misrepresentations, and audit provisions to monitor fund usage. Contracts should include clear terms on how donations are used and penalties for non-compliance, and consider bans on fundraising activities for violators.
Entity
Kars-R-Us.com, Inc.
Also known as: Kars-R-Us.com
Industry
OtherOfficial Press Release
https://portal.ct.gov/ag/press-releases/2025-press-releases/connecticut-joins-ftc-to-stop-deceptive-cancer-charity-fundraising-scheme
as filed complaint.pdf?rev=76402724d6b24ab3a8d92f8b14dcc862&
https://portal.ct.gov/-/media/ag/press_releases/2025/as-filed---complaint.pdf?rev=76402724d6b24ab3a8d92f8b14dcc862&hash=67C0C6A3B0BE0FBE63D5375C650EEF4E
as filed proposed order.pdf?rev=49d54e8acaf34d11be609f6ce8f8
https://portal.ct.gov/-/media/ag/press_releases/2025/as-filed---proposed-order.pdf?rev=49d54e8acaf34d11be609f6ce8f8967a&hash=67637D39E8A574E604945475406F4C6C
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Kars-R-Us.com, Inc. (Kars)"
"a total monetary judgment of $3,882,091"
"Kars claimed that vehicle donations would allow UBCF to “save lives” by providing free and low-cost breast cancer screenings. But, in reality, only $126,815 or 0.28% of the more than $45 million that Kars raised was used to provide breast cancer screenings"
The FTC filed a complaint alleging that GovAssist LLC, Entry LLC, and Scott Zuckerman used deceptive paid search ads, misleading service and pricing claims, and fake reviews to deceive consumers seeking passport services. The complaint alleges violations of the FTC Act, the Impersonation Rule, and the Gramm-Leach-Bliley Act; the case will be decided by the court, and no penalty or remedy is reported as imposed.
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The FTC referred a complaint against REPS & Company Inc. and company executives, alleging they bypassed ticket-issuer security controls and purchasing limits to acquire millions of tickets for resale. The complaint was filed by the Department of Justice, and the case will be decided by the court; the press release does not report a penalty or other remedy imposed.
$106.8M
A federal court entered a $106.8 million default judgment against corporate defendants in an alleged debt-relief scheme that impersonated banks and government entities and targeted seniors and veterans. The judgment permanently bans the defendants from the debt-relief industry and imposes additional prohibitions, including on impersonation, telemarketing, and misrepresentations.
The FTC sued Digital Forensics Corporation LLC and affiliated defendants, alleging they misled sextortion victims with promises of investigative and monitoring services that often were not provided, and used fake positive reviews. A federal court granted the FTC’s request to temporarily halt the defendants’ activities; the complaint remains for the court to decide.
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.