FTC and States Stop Kars-R-Us.com Deceptive Fundraising Scheme

FTC Cases & Proceedings

Filed February 6th, 2026

Detected February 11th, 2026

Summary

The FTC and 19 states have stopped Kars-R-Us.com, Inc. and its operators from continuing a deceptive charity fundraising scheme. The operators made false claims to donors, and under a proposed settlement, face restrictions on future fundraising, with one operator permanently banned.

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What changed

The Federal Trade Commission, in conjunction with 22 agencies from 19 states, has taken action against Kars-R-Us.com, Inc., Michael Irwin, and Lisa Frank for operating a deceptive charity fundraising scheme. The defendants allegedly made false or deceptive claims to U.S. donors while soliciting funds for the United Breast Cancer Foundation. A proposed settlement order has been reached, which includes restrictions on future fundraising activities for Kars-R-Us.com and its operators, and a permanent ban from fundraising for Michael Irwin, the company's President and co-owner until 2022. The complaint and proposed judgment were filed in September and October 2025, respectively.

This enforcement action signifies a significant intervention against fraudulent charitable solicitations. Regulated entities involved in fundraising, particularly those operating nationwide or in multiple states, should review their practices to ensure all claims made to donors are truthful and substantiated. While specific penalties beyond the permanent ban for Irwin and fundraising restrictions are not detailed in this summary, such actions typically aim to protect consumers and ensure the integrity of charitable giving. Compliance officers should be aware of the FTC's and state attorneys general's continued focus on deceptive fundraising practices.

What to do next

Review all charitable fundraising claims for truthfulness and substantiation.
Ensure compliance with state and federal regulations regarding charitable solicitations.
Be aware of FTC and state enforcement actions targeting deceptive fundraising schemes.

Penalties

Permanent ban from fundraising for Michael Irwin; restrictions on future fundraising activities for Kars-R-Us.com, Inc. and its operators.

Source document (simplified)

Tags:

Consumer Protection
Bureau of Consumer Protection Last Updated

February 6, 2026

Case Status Pending Federal Trade Commission and the States of Arkansas; California; Colorado; Connecticut; Delaware; Florida; Georgia; Illinois; Indiana; Maryland; New York; North Carolina; Oklahoma; Oregon; South Carolina; Utah; Virginia; West
Virginia: and Wisconsin, Plaintiffs, v.Kars-R-Us.com, Inc., a corporation also doing business as Donate Car 2 Veterans and Donation2Charity.com; Michael Irwin, individually and as an
officer of Kars-R-Us.com, Inc.; and Lisa Frank, individually and as an officer of Kars-R-Us.com, Inc., Defendants.

Case Summary

The Federal Trade Commission, along with 22 agencies from 19 states, stopped a deceptive charity fundraising scheme and its operators who made false or deceptive claims to U.S. donors.

Kars-R-Us.com, Inc. (Kars) and its operators, Michael Irwin and Lisa Frank, solicited charitable donations nationwide on behalf of United Breast Cancer Foundation, Inc. (UBCF), a charity that claims to assist individuals affected by breast cancer, according to a complaint filed by the FTC and states (link to complaint).

Under a proposed settlement order reached with the FTC and its state partners, Kars and its operators face restrictions on future fundraising activities and Irwin, Kars’s President and co-owner until 2022, will be permanently banned from fundraising.