Attorney General Jason Miyares announced that his office, in cooperation with the Federal Trade Commission and 18 other states, has taken action to stop a deceptive charity fundraising operation run by Kars-R-Us.com, Inc. (Kars) and its operators. The settlement restricts future fundraising activities by the organization and secures $550,000 for distribution to cancer-related charities.
According to a complaint filed by Virginia, the FTC, and other states, Kars solicited charitable donations across the country on behalf of United Breast Cancer Foundation, Inc. (UBCF), which claims to support individuals affected by breast cancer. The complaint alleges that Kars told donors their vehicle donations would help UBCF “save lives” by providing free and low-cost breast cancer screenings. However, only $126,815—or 0.28%—of more than $45 million raised was actually used for these screenings.
Under the proposed settlement order reached by Attorney General Miyares and his federal and state partners, the president of Kars will be permanently banned from fundraising. Additionally, Kars and its operators will face significant restrictions on future fundraising efforts.
The complaint also states that between 2017 and 2022, Kars raised over $45.5 million for UBCF. Of this amount, $34.9 million went to pay Kars itself, its operators, and vendors. Most of what remained was reportedly used for purposes other than cancer screenings, including high compensation for UBCF’s CEO.
Attorney General Miyares commented: “Kars tugged at donors’ heartstrings to maximize contributions with little regard for truthfulness or accuracy of the claims it made on behalf of UBCF.” More than 84,000 people donated vehicles to Kars during this period.
The case involves participation from Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, New York, North Carolina, Oklahoma, Oregon, South Carolina, Utah, West Virginia and Wisconsin alongside Virginia and the FTC. The settlement is pending approval in the United States District Court for the Central District of California.
