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SettlementHigh RiskMultistate

FTC and States Settle Kars-R-Us.com for $3.88M Over Deceptive Charity Fundraising

Kars-R-Us.com, Inc.September 26, 2025Federal Trade Commission

Penalty Amount

$3,882,091

Consumers Affected

84,000

Summary

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.

Remedy

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.

BanInjunctionConsent DecreeMonetary Penalty

Contract Impact

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.

Contract Search Terms

charitable fundraisingdeceptive marketingclaim substantiationdonation usage disclosurefundraising service agreementmisrepresentation prohibitionaudit rightsconsumer protection compliancecharity fraudfundraising bans

Violation Types

Entity Details

Entity

Kars-R-Us.com, Inc.

Also known as: Kars-R-Us.com

Industry

Other

Multistate Coalition

Arkansas Attorney GeneralCalifornia Attorney GeneralColorado Attorney GeneralConnecticut Attorney GeneralDelaware Attorney GeneralFlorida Attorney GeneralGeorgia Attorney GeneralIllinois Attorney GeneralIndiana Attorney GeneralMaryland Attorney GeneralMaryland Secretary of StateNew York Attorney GeneralNorth Carolina Attorney GeneralNorth Carolina Secretary of StateOklahoma Attorney GeneralOregon Attorney GeneralSouth Carolina Secretary of StateUtah Attorney GeneralUtah Division of Consumer ProtectionVirginia Attorney GeneralWest Virginia Attorney GeneralWisconsin Attorney General

Official Sources

Source Evidence

Entity Name
"Kars-R-Us.com, Inc. (Kars)"
Fine Amount
"a total monetary judgment of $3,882,091"
Violation Types
"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"

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