L.A. Vehicle Donation Charity Ordered to Shut Down After Alleged False Advertising

L.A. Vehicle Donation Charity Ordered to Shut

Down After Alleged False Advertising

Los Angeles vehicle donation charity People’s Choice Charity has been ordered to shut down and pay at least $30,000 in penalties to set up a fund with the California Community Foundation to support charitable programs for the benefit of children. A payment of $870,000 was stayed but may be enforced if the nonprofit violates the injunction.

People’s Choice Charities advertised that when people donated their vehicles through the company, 100 percent of the proceeds from the sale of cars would be given to charities selected by the donors, according to a joint statement from Becerra’s and Lacey’s offices.

The stipulated final judgment places a permanent injunction on Gary Stone, the nonprofit’s president, barring him from serving as a director, officer, trustee or employee of any California charitable organization. The order also permanently bans Stone from doing contract work with charities, holding any management or supervisory position or engaging in fundraising activities.

Read full article and learn more about the FTC and Deceptive advertising here.

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Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.