Judge bars Kars4Kids from advertising in California, saying it misled donors about Jewish mission
A California judge has ordered Kars4Kids to stop airing its famous “1-877-Kars4Kids” jingle in the state unless it discloses that its funding goes to Jewish programs for families and adults in New York, New Jersey, and Israel.
A California Superior Court judge ruled last week that the organization violated state false advertising and unfair competition laws by failing to disclose how it allocates donation funds. The case was brought by California donor Bruce Puterbaugh, who said he would not have donated his vehicle if he had known the money was “directed at a Jewish organization in New York.”
At trial, Kars4Kids COO Esti Landau testified that most of the charity’s funding ultimately supports Oorah, the kiruv nonprofit that runs programs including a summer camp in upstate New York. She said Kars4Kids is based in Lakewood, New Jersey, and that while about 25% of its revenue comes from California, the organization does not operate California-based programs beyond a backpack drive that she described as a branding exercise.
Landau also testified that much of the organization’s work is directed toward 17- and 18-year-olds seeking gap-year trips in Israel, and their families. She said that $16.5 million was used to purchase a building in Israel in 2022, and that $437,000 was spent on what was described as “Middle East outreach.”
Judge Gassia Apkarian wrote that “the failure to disclose that funds benefit adults and families, and that this support is contingent upon a specific religious affiliation, is a material omission.” She added that a reasonable donor to a “kids” charity would consider it important that donations support adult matchmaking and general family subsidies.
Kars4Kids has 30 days to stop running ads that do not disclose its religious affiliation, the location of beneficiaries, and their ages.
The organization said it will appeal and condemned the ruling. Its website states: “Kars4Kids is a registered nonprofit Jewish organization who, together with Oorah, our sister charity, help thousands of children develop into productive members of the community.”
In 2009, Pennsylvania and Oregon fined Kars4Kids for deceptive advertising, saying it obscured that most funds support kiruv rather than needy children. In 2017, the Minnesota attorney general said she was “concerned and troubled” after finding only 1% of funding went to children in the state.
