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FTC and States File Settlement to Halt Deceptive Kars-R-Us Cancer Charity Scheme

Regulators say the vehicle-donation drive diverted donations away from promised breast cancer screenings.

Overview

  • The proposed multistate order targets Kars-R-Us, Michael Irwin, and Lisa Frank for deceptive solicitations on behalf of the United Breast Cancer Foundation.
  • From 2017 to 2022, the operation raised more than $45.5 million, with about $34.9 million paid to the fundraiser and its vendors.
  • Only $126,815—about 0.28% of the total—funded actual health screenings, according to the complaint.
  • Michael Irwin faces a permanent fundraising ban, and Kars-R-Us and Lisa Frank must substantiate future appeals and avoid misrepresentations.
  • A $3,882,091 judgment is largely suspended for inability to pay but becomes fully due if finances were misrepresented, and more than 84,000 vehicles were donated nationwide, including 935 in Utah.