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"
$930K
The FTC finalized orders requiring CMG Media Corporation (doing business as Cox Media Group), MindSift LLC, and 1010 Digital Works LLC to pay a total of $930,000 for falsely claiming they offered an AI-powered service that could target ads based on conversations captured from consumers' smart devices, and that consumers had opted into such targeting. The orders also prohibit the companies from making misrepresentations about their advertising services, voice data collection, and consumer consent.
The FTC announced it is seeking public comment on a proposed enforcement policy statement regarding personalized pricing, which is the use of personal data to set prices based on what a company believes an individual consumer is willing to spend. The statement warns that undisclosed collection or use of personal data for personalized pricing could violate the FTC Act's prohibition on unfair or deceptive practices. The Commission voted 2-0 to authorize the Federal Register notice.
$4.0M
The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.
The FTC filed a complaint against Credit Glory LLC and related entities for deceptive credit repair practices, including false promises, impersonating debt collectors, charging illegal upfront fees, and using negative option billing without consent. A federal court temporarily halted the operation.
The FTC issued a policy statement abandoning disparate-impact liability, stating it will no longer bring claims based on this theory. It also modified compliance obligations for several companies based on past decisions.
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.