Overview
- The Fourth Appellate District granted a writ of supersedeas on Thursday, allowing Kars4Kids’ ads to continue airing in California while the organization pursues an appeal.
- An Orange County judge had ruled on May 8 that the commercials were misleading by omission and ordered express audible disclosures about religious affiliation, fund destinations and beneficiaries and a ban on using young children in ads; those requirements are now on hold.
- Trial testimony showed Kars4Kids funnels most proceeds to Oorah, an Orthodox Jewish outreach group, and that donations funded programs such as gap-year Israel trips and a $16.5 million building purchase in Israel.
- The suit was brought by donor Bruce Puterbaugh, who said he gave a vehicle after hearing the jingle and expected funds to help underprivileged children in California; the lower court awarded him a $250 restitution payment.
- Kars4Kids has faced earlier state enforcement actions and penalties and separate federal litigation; the appeal’s outcome could shape rules on charity disclosures and donor expectations about where solicited funds are spent.