Charity scams are unfortunately becoming the new norm and a Texas organization proves that true with a particular Humane Society. The recent charity scam includes this organization providing 251 clothing bins across Michigan, however they are not 100 percent truthful as not all of the profits are being donated to the Michigan Human Society, Michigan Attorney General Bill Schuette says.
On Friday, Schuette announced a cease-and-desist order against the for-profit company, American Textile Recycling Service Inc. of Houston as the Texas Humane Society is falsely labeling bins.
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Schuette alleges there have been more than 300,000 violation for falsely labeling the bins, which state the Michigan Humane Society “receives 100 percent of the market value of every donation received at this location.”
In reality, the clothing donations generated $835,000 in revenues or 34 cents per pound, of which the Humane Society received $49,000 or 2 cents per pound — about 6 percent of the revenues, said a press release from Schuette’s office.
“Michigan residents deserve to know if the donation they make will have an impact,” Schuette said in a press release. “Due to the alleged deceptive marketing of this company, residents who donate to these bins across the state are lead to believe that the Michigan Humane Society is getting a large amount of their donation which is untrue and cannot be tolerated.”
The Notice of Intended Action alleges 319,274 violations, with maximum penalties of $10,000 per violation. It also orders ATRS to cease and desist these violations and gives them 21 days to resolve the matter or face a civil action in court.
ATRS Inc. came to the attention of the attorney general’s office n during the investigation of another professional fundraiser Golden Recyclers, which recently agreed to pay $35,000 for deceptively operating its clothing donation bins.
ATRS operates 251 bins throughout Michigan, including Detroit, Lansing, Jackson, Kalamazoo and Battle Creek.
Complaints regarding charitable solicitations may be filed through the Attorney General’s online complaint form, or by mailing the Charitable Trust Section at P.O. Box 30214, Lansing, MI 48909-7714, or by emailing the Charitable Trust Section at ct_email@mi.gov.
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Original article published on www.mlive.com.
