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California Judge Orders Kars4Kids to Say More Than the Jingle

By Nat Ives | WSJ Leadership Institute

 

Good morning. One of the most recognizable ad jingles may go quiet in California, The WSJ Leadership Institute’s Katie Deighton writes for the newsletter:

The sweet, simple refrain of “one-eight-seven-seven Kars-4-Kids” has become one of the most recognizable ad jingles to air in the U.S.

It’s now banned from broadcast in California, at least unless accompanied by some new disclosures.

A judge last week prohibited the nonprofit Kars4Kids from broadcasting its jingle in the state after finding that it violated both California’s False Advertising Law and Unfair Competition Law. The decision came in response to a suit filed by Bruce Puterbaugh, a California resident who testified that he had donated a 2001 Volvo to the organization after being exposed to its advertising “over and over” but later felt “taken advantage of.”

The group’s ads led potential donors of old cars to believe that Kars4Kids would use proceeds from their gifts to benefit needy or disadvantaged children in California, Judge Gassia Apkarian of the state’s Orange County Superior Court wrote. But 60% of funds go toward an organization called Oorah, which supports Orthodox Jewish programs in New York, New Jersey and in the Middle East, the judge found.

“The evidence also shows that children, especially needy or underprivileged children, are not the recipients of the proceeds of the donations,” Apkarian wrote. Oorah funds services including “matchmaking” for young adults and gap year trips for 17 to-18-year-olds, she said.

Kars4Kids broadcast ads in California now must audibly disclose the charity’s religious affiliation, the geographic location of its primary beneficiaries and the age of those beneficiaries, according to the ruling. The group also can no longer use images of “prepubescent children to solicit donations that support individuals who have reached the age of majority.”

Kars4Kids said it will appeal.

“We believe this decision is deeply flawed, ignores the facts, and misapplies the law,” the group said in a statement. “It’s well known that we are a Jewish organization and our website makes it abundantly clear.”

Helping children often means continuing support through young adulthood, Kars4Kids added. “This holistic approach allows our programs to be more effective at sustaining lasting impact,” it said.

Flashback: Consumer marketers’ charity work can also come under scrutiny, as our colleague Megan Graham reported last fall. Set Active devotees had at first applauded when the apparel brand announced a limited-release drop of pink clothing called “Set for a Cure,” promising that “every purchase goes toward breast cancer research.” But their anticipation turned to anger when the company revealed that the portion of proceeds earmarked for charity was 2%.

 
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Gas Money

Transportation Secretary Sean Duffy and his family on a travel show sponsored in part by Boeing and Toyota, which have faced scrutiny from regulators Duffy oversees. Department of Transportation

Boeing and Toyota donated $1 million each to help fund a new reality-TV inspired show starring Transportation Secretary Sean Duffy as he travels with his family, Andrew Tangel and Sharon Terlep report.

“The Great American Road Trip” features the Duffys, alumni of MTV’s “The Real World” who met on “Road Rules: All Stars,” visiting destinations across the U.S. in a video series celebrating the country’s 250th birthday.

Costs were covered by a nonprofit backed by big companies that Duffy’s agency oversees, including the sums given by Boeing and Toyota, according to people with knowledge of the agreements.

Citizens for Responsibility and Ethics in Washington has requested an investigation by the department’s inspector general into potential federal rules violations related to gifts, travel and promoting products.

“The public has to wonder whether their interests are being put first, or is it the sponsors’ interest because they are paying for this project,” said Donald Sherman, chief executive of CREW, a nonpartisan organization.

A department spokeswoman said government ethics officials signed off on the nonprofit arrangement, and that the secretary had no role in soliciting sponsorships. “The Department of Transportation doesn’t give preferential treatment to any person, organization, or entity at any time,” she said.

Getting real: Spencer Pratt, who gained fame as a cast member on MTV’s “The Hills,” struck a deal for a new reality TV show following his campaign for mayor of Los Angeles, where he’s currently No. 2 in polls. [TMZ]

 

The Magic Number

$850 million

Price that LVMH will get for Marc Jacobs from buyers G-III Apparel, which owns or licenses fashion brands including Karl Lagerfeld, and WHP Global, which manages licenses for Vera Wang and Rag & Bone. LVMH bought a majority stake in Marc Jacobs in 1997, when Jacobs himself became creative director of Louis Vuitton.

 

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Keep Reading

Disney seems to have softened its demands that advertisers in next year’s Super Bowl pay $10 million for 30 seconds of time and buy $10 million in additional inventory in the process. [Variety] 

The musical lineups were great but the walks to some venues were not alright (ahem, Netflix): The best and worst of upfronts week. [Ad Age]

Paramount+ is considering following Netflix’s lead and adding podcasts to the service. [BI] 

Gloo, a newly public provider of enterprise technology and AI tools to Christian churches, nonprofits and universities, is aiming for its next big milestone: turning a profit. [WSJ] 

The fledgling travel influencer on the cruise ship that suffered a hantavirus outbreak is now posting from a 42-day quarantine and urging brands to donate to research. [BI] 

Seven new things about this year’s Cannes Lions. [Adweek]

Joe Sedelmaier, the commercial director whose work included Wendy’s “Where’s the beef?” ad, died at age 92. Check out embeds of that 1984 spot, another Wendy’s ad comparing rival burger-chain menus to a “Soviet fashion show” plus “Sedelmaiers” for Federal Express and Alaska Airlines. [NYT]

 
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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

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