Attorney General Jason Miyares of Virginia announced that his office, in collaboration with the Federal Trade Commission and 18 other states, has taken action to halt a deceptive charity fundraising operation run by Kars-R-Us.com, Inc. The scheme involved soliciting vehicle donations on behalf of the United Breast Cancer Foundation, Inc. (UBCF), with promises that the proceeds would fund breast cancer screenings.
According to a complaint filed by Virginia, the FTC, and other states, Kars-R-Us.com raised more than $45 million between 2017 and 2022. However, only $126,815—or about 0.28%—of those funds were actually used for breast cancer screenings. Most of the money went to pay Kars-R-Us.com itself, its operators, vendors, and included significant compensation for UBCF’s CEO.
The settlement order reached by Attorney General Miyares and enforcement partners permanently bans the president of Kars-R-Us.com from fundraising activities and imposes strict limitations on future fundraising efforts by Kars-R-Us.com and its associates. The resolution also secures $550,000 to be distributed to cancer-related charities.
Kars-R-Us.com solicited donations nationwide through television, radio, and online advertisements claiming that contributions would “save lives” by funding free or low-cost breast cancer screenings. The complaint alleges these appeals were misleading and maximized contributions without regard for accuracy or truthfulness.
More than 84,000 people donated vehicles under these false pretenses. Of the total amount raised for UBCF during this period, $34.9 million was paid out to Kars-R-Us.com’s operators and vendors rather than supporting charitable services.
Joining Virginia in this case are Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Maryland, New York, North Carolina, Oklahoma, Oregon, South Carolina, Utah, West Virginia and Wisconsin. The proposed settlement has been submitted for approval in the United States District Court for the Central District of California.
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