“An injunction ensures that competition for charitable dollars is based on truth, not catchy, content-free, deceptive songs”
A California judge has ordered Kars4Kids to stop airing its well-known advertising jingle in its current form after ruling the charity misled donors by failing to clearly disclose its ties to a New Jersey-based Orthodox Jewish organization.
The ruling landed a major blow to one of the most recognizable nonprofit campaigns in America. For years, the “1-877-Kars4Kids” jingle flooded television and radio airwaves, encouraging people to donate unwanted vehicles. But Orange County Superior Court Judge Gassia Apkarian determined the ads concealed critical information about where the money actually goes.
The case stemmed from a lawsuit filed in 2021 by retired California resident Bruce Puterbaugh, who donated a nonworking 2001 Volvo after repeatedly hearing the ads.
Puterbaugh testified he believed his donation would benefit disadvantaged children in California or elsewhere in the state because the commercials prominently featured young children and never referenced any religious affiliation.
According to court documents, Puterbaugh later learned the organization heavily funds Oorah, an Orthodox Jewish outreach organization that supports religious education programs and matchmaking services for young Jewish adults.
During testimony described by the judge as “strikingly candid,” Kars4Kids COO Esti Landau acknowledged the organization is Jewish affiliated and admitted the 30-second commercial “does not say anything” about religion.
Landau also testified that roughly 25% of Kars4Kids’ revenue comes from California despite the group having virtually no operational presence there outside of limited backpack giveaways.
The court further heard that 60% of Kars4Kids’ funds go directly to Oorah, amounting to roughly $45 million annually. Some of those funds were directed toward projects and outreach efforts in Israel and the Middle East.
Apkarian ruled the advertising campaign was “false and misleading” and permanently barred the charity from using the ads in California without changes. The judge also ordered the organization to pay Puterbaugh $250 in restitution, reflecting the estimated value of his donated Volvo.
The ruling adds to mounting scrutiny surrounding Kars4Kids.
An investigation by the Asbury Park Press and USA TODAY Network detailed allegations that the nonprofit spent tens of millions on advertising, but channels most proceeds into affiliated religious programming. The organization failed to adequately inform donors about its religious connections, according to the report.
Attorneys for Puterbaugh called the ruling the end of a “fraudulent and deceptive campaign.” Kars4Kids has not responded to requests for comment.