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"
$750K
The FTC finalized an order against Vanilla Chip LLC (doing business as TruHeight) and its principals for deceptively advertising height-enhancing supplements for children and teens without scientific evidence. The company also used fake reviews and incentivized 5-star ratings. The order requires a $750,000 payment and prohibits false health claims and deceptive review practices.
$2.3M
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The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.
$35.0M
The FTC alleged that Hopper, a travel booking app, charged consumers hidden and pre-selected fees (Tip and VIP Support) without their consent, misrepresented the benefits of VIP Support and Price Freeze services, and failed to clearly disclose total prices. Hopper agreed to pay $35 million for consumer redress and is prohibited from misrepresenting fees under a proposed order.
$1.5M
The FTC finalized a settlement with Publishing.com LLC and its principals for misleading consumers about potential earnings from self-publishing products. The company will pay $1.5 million and is prohibited from making unsubstantiated earnings claims, failing to disclose refund terms, and misrepresenting endorsements and reviews.
The FTC is seeking public comment on a proposed policy statement addressing concerns that AI companies may be manipulating AI system outputs contrary to consumer expectations for objectivity and accuracy. The statement explains that such conduct could be considered deceptive under Section 5 of the FTC Act. The public comment period runs until July 31, 2026.