DELAWARE — Delaware Attorney General Kathy Jennings, alongside the Federal Trade Commission and 19 states, announced action Wednesday to stop Kars-R-Us.com and its operators from running a nationwide deceptive cancer charity fundraising operation. The complaint alleges that Kars-R-Us.com, Inc., and its operators Michael Irwin and Lisa Frank solicited vehicle donations on behalf of the United Breast Cancer Foundation, claiming contributions would provide free and low-cost breast cancer screenings.
In reality, only $126,815, or 0.28 percent, of more than $45 million raised was used for screenings, while the majority went to pay Kars, its operators, vendors, and other unrelated expenses.
Attorney General Jennings called the fundraising scheme “despicable,” emphasizing that the state will not tolerate the exploitation of donors’ generosity. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said the case sends a clear message that misrepresenting charitable claims will have consequences. Under a proposed settlement, Irwin is permanently banned from fundraising, while Frank and Kars face restrictions on future fundraising and must substantiate their claims.
The parties also face a $3.88 million monetary judgment, partially suspended due to their inability to pay in full. The enforcement effort includes the attorneys general of 18 other states and secretaries of state from Maryland, North Carolina, and South Carolina, along with the Utah Division of Consumer Protection.
Photos: Delaware.gov