California court rules Kars4Kids ads violate false advertising law

An Orange County judge ruled that the Kars4Kids nonprofit violated California's False Advertising Law, ordering the charity to cease airing its car-donation jingle in its current form by June 8, 2026, according to ABC7 Los Angeles.

The ruling, brought by an OC resident who donated his car under false assumptions, exposes the gap between what Kars4Kids ads imply — that donations broadly help needy American children — and the reality that the vast majority of funds flow to Orthodox Jewish programs in New York, New Jersey and overseas.

The lawsuit was filed by an Orange County man who donated his car believing proceeds would support underprivileged children across the country. When he discovered where the money actually went, he took the charity to court — and prevailed.

"We have to show that they knowingly and intentionally misled the public and it's not an easy thing to do, but we did it," said Anthony Graham, the attorney representing the plaintiff, according to ABC7 Los Angeles.

Kars4Kids ads feature young children, yet the vast majority of its funds go to Orthodox Jewish programs in New York, New Jersey and the Middle East. Legal analyst Neama Rahmani highlighted the disconnect: "When you're running ads with young kids and the funds are going to older kids in another state and maybe even another country that's a problem," he told ABC7 Los Angeles.

Kars4Kids disputes the judgment. The nonprofit argues its website already discloses that it is a Jewish organization. Wendy Kirwan, the charity's director of communications, said in a statement to ABC7 Los Angeles: "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."

The state ruling is not the charity's only legal exposure. A federal class-action lawsuit is pending, and Graham warned the financial stakes are steep. "You have to be looking at least ($400 million) to $500 million," he told ABC7 Los Angeles regarding potential damages.

Analysts also noted that if California regulators or prosecutors take interest, Kars4Kids could face criminal investigations in addition to the civil actions already underway, ABC7 Los Angeles reported.

Kars4Kids called the state ruling 'deeply flawed' and said it plans to appeal. The nonprofit has until June 8 to pull its current advertisements from California airwaves — and could face criminal investigations if state regulators or prosecutors take up the case, ABC7 Los Angeles reported.