For nearly two decades, a twangy jingle has burrowed into American brains: “1-877-Kars4Kids/K-A-R-S Kars for Kids/Donate your car today.” It became a cultural earworm, the subject of jokes and parodies. But on May 8, 2026, a California judge ruled that the ads behind the jingle were misleading—and ordered them off the air in the state. The ruling exposed what donors thought they were funding versus where their money actually went.

Here’s what happened.

The Lawsuit

According to The New York Times, the case began with Bruce Puterbaugh, a 70-year-old cabinetmaker from Orange County, California. According to The Guardian, in 2021, Puterbaugh donated a nonfunctional 2001 Volvo XC, valued at $250, to Kars4Kids. He had heard the ad “over and over” on the radio and believed it meant the proceeds would help “underprivileged kids from all over the US.”

Puterbaugh later learned from a neighbor that Kars4Kids wasn’t actually a general children’s charity. He discovered that the proceeds primarily funded Oorah, a New Jersey-based Jewish organization, not the broad network of underprivileged children the ads suggested.

Puterbaugh testified that he felt “taken advantage of.”

What the Judge Found

According to The New York Times, Judge Gassia Apkarian of the Superior Court of California in Orange County ruled on May 8 that Kars4Kids’s ads violated California’s laws against false advertising and unfair competition.

The judge found the ads were “misleading by omission.” The organization sought to make the jingle memorable through “extreme repetition, while simultaneously stripping it of all substantive facts,” the judge wrote.

The chief operating officer of Kars4Kids, Esti Landau, acknowledged in testimony that the 30-second ads, which have been running for two decades, do not “say anything” about the charity’s specific nature and do not mention the word “Jewish,” even though Kars4Kids is a Jewish organization.

Where the Money Goes

Evidence presented at trial showed that children—specifically “needy or underprivileged children”—were not the exclusive recipients of the proceeds. Instead, Kars4Kids primarily funds Oorah, which operates out of the same office building in Lakewood, New Jersey.

Landau testified that Kars4Kids sends about $45 million a year to Oorah—60 percent of the money it raises. Another 30 percent is spent on in-house advertising, and about 6 percent on administrative costs.

Oorah runs summer camps in the tri-state area and organizes gap year trips to Israel for 17- and 18-year-olds. The organization has also spent money overseas, including $16.5 million to buy a building in Israel.

The only program in California sponsored by Kars4Kids was a promotional giveaway of Kars4Kids-branded backpacks. Of the 120,000 cars donated nationwide, approximately 30,000 originated in California, though it’s unclear over what time period those cars were donated.

What Happens Now

Judge Apkarian said that Kars4Kids had 30 days to stop broadcasting its ads in California. The deadline was June 8, 2026.

If Kars4Kids resumes advertising, its ads must contain “an express, audible disclosure of its religious affiliation and the geographic location of its primary beneficiaries and the age of the beneficiaries, specifying whether they aim for children or families, or both.”

The judge ordered the charity to pay Puterbaugh $250 for the fair-market value of his donated Volvo.

Furthermore, the charity is also facing a federal class-action lawsuit that could carry significant financial consequences. According to ABC7, attorney Anthony Graham said donors should be looking at “at least ($400 million) to $500 million” in potential damages.

What Kars4Kids Says

Kars4Kids, a nonprofit based in Lakewood, New Jersey, said it planned to seek a stay of the ruling and appeal it. The organization said in a statement: “We believe this decision is deeply flawed, ignores the facts, and misapplies the law. It’s well known that we are a Jewish organization, and our website makes it abundantly clear.”

Wendy Kirwan, the group’s director of communications, said: “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.”

Kars4Kids added that it helps “thousands of kids with youth development, mentoring and educational programs, including hundreds in the state of California, contrary to the judge’s complete mischaracterization of our work and of the testimony at trial.”

What Experts Say

According to ABC7, legal analyst Neama Rahmani said the court’s focus was on how the charity portrayed its mission. “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 said.

Similarly, legal experts say the organization could face further scrutiny. If regulators or prosecutors take an interest, Kars4Kids executives could face potential criminal investigations.