Court blocks Kars4Kids ads in California over ‘misleading’ claims
Court blocks Kars4Kids ads in California over ‘misleading’ claims
Kathleen O'BoyleSun, May 17, 2026 at 11:35 PM UTC
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Kars4Kids is facing a lawsuit -Credit:Kars4Kids/YouTube (Kars4Kids/YouTube)
A nonprofit with a widely recognized soundtrack is facing a setback after a California judge ruled its ads crossed the line into misleading territory.
Kars4Kids, the car donation organization known for its catchy jingle, has been banned from airing its commercials in California in their current form. The ruling came after a judge determined the ads were “misleading” and “unfair,” despite their popularity among listeners across the state, as well as in other states such as New Jersey. The commercials prominently feature the group's name, its phone number, and a direct appeal to “donate your car today,” but the court found they failed to provide important context about the organization’s mission.
In her final judgment, Judge Gassia Apkarian said testimony during the trial revealed gaps in what the ads communicate. According to the ruling, Kars4Kids chief operating officer Esti Landau acknowledged that the nonprofit is a Jewish organization based in NJ and “does not say anything” about its religious affiliation in its advertising. She also confirmed that anyone looking for more detailed information about the organization’s purpose would “have to go to the website.” This comes as another commercial, which was aired by CBS, was slammed as 'unwatchable.'
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The judge ultimately determined that this lack of detail amounted to a problem. By not clearly explaining its mission in the ads themselves, Apkarian found that the organization’s messaging was “misleading by omission.” She ruled that Kars4Kids had engaged in false advertising and violated California’s unfair competition law.
The case was brought by California retiree Bruce Puterbaugh, who donated his car to the organization after hearing the jingle. He later challenged the ads, arguing they did not accurately reflect how donations are used.
“We are very pleased that the court found, after a five-day trial, that the organization’s primary purpose is not to help economically disadvantaged children and permanently enjoined Kars4Kids from continuing to use the ad in its present form,” Puterbaugh’s attorneys, Anthony Graham and Neal Roberts, said in a statement.
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“The result of this trial is that the people of California will now be protected from a deceptive and misleading advertising campaign that leads ’thousands of California donors … to surrender property under the false impression that they are supporting local, secular, or underprivileged kids,” they continued. “This constitutes a massive, ongoing transfer of assets based on a fraudulent omission. This fraudulent and deceptive campaign has now been put to an end.”
In the ruling, Apkarian pointed to additional testimony from Landau, noting that Kars4Kids’ primary function is not to help economically disadvantaged children and that it does not operate “functional programs” in California. Instead, the organization primarily raises money for Oorah, a separate group focused on Jewish heritage programs and summer camps in New York and New Jersey. The court noted that Oorah receives about 25 percent of its revenue from California donors.
According to the decision, Oorah has also directed funds internationally, including transfers to North Africa and the Middle East, as part of efforts to expand programs tied to Israel. These include organizing “gap-year” trips for teenagers and supporting matchmaking services for young adults.
“Had the Defendant disclosed that the donation would benefit a religious organization in New York/New Jersey and Israel rather than needy children in California, the Plaintiff would not have surrendered the vehicle,” Apkarian wrote. “The interest of the state in preventing consumer fraud far outweighs the Defendant’s interest in maintaining a ‘memorable’ but deceptive jingle.”
The ruling claimed Kars4Kids was misleading -Credit:Youtube
The ruling does not permanently bar Kars4Kids from advertising in California, but it sets clear conditions. Any future commercials must include “an express, audible disclosure of its religious affiliation and the geographic location of its primary beneficiaries and the age of the beneficiaries, specifying whether they aim for children or families, or both.” The court also ordered the organization to pay Puterbaugh $250, reflecting the value of the 2001 Volvo XC he donated.
Kars4Kids responded to the decision in a statement, pushing back on the court’s conclusions. “We believe this decision is deeply flawed, ignores the facts, and misapplies the law,” a spokesperson said. “It’s well known that we are a Jewish organization, and our website makes it abundantly clear.”
The organization defended its work, adding, “For 30 years, we’ve made it easy to donate an old car to benefit kids and families across the country through our sister charity Oorah. We’re helping thousands of kids with youth development with our mentoring and educational programs, including hundreds in the state of California, contrary to the judge’s complete mischaracterization of our work and of the testimony at the trial. Like many youth-serving organizations, helping children often means engaging parents and families as well, and continuing support through young adulthood. This holistic approach allows our programs to be more effective at sustaining lasting impact.”
Kars4Kids also addressed the lawsuit itself, stating, “Our ads appeal to people with a car to dispose, offering a quick and easy way to give it to charity instead of the junkyard. We believe this case was nothing more than a lawyer-driven attempt to siphon off charitable funds for their own gain. We expect to win on appeal because the law and the facts are clearly on our side.”
Source: “AOL Money”
