Did you ever hear the jingle? [1]

The main issue is that it's a bunch of kids (~5-8yo) singing "1-877 cars for kids, K-A-R-S Kars 4 Kids, 1-877-KARS-4-Kids, donate your car today". Given its resemblance to preschool-age kids songs, and that it was a bunch of very young kids singing it, and that it played incessantly over California radio stations, many people thought that it was a charity funding local underprivileged kids of preschool/school age, not gap years for 17-18 year old NYC and NJ residents in Israel. They were always up-front on the website about what it is (presumably how they avoid fraud charges), but how many people are going to check the website when they have the 877 number burned in their brain?

If you look at the lawsuits against them, they almost all fit that pattern: someone (often elderly) who heard the kids singing on the radio, had a junk car, and figured they'd go help some underprivileged kids. Sure, always read the fine print, but the judge listened to the jingle and agreed that it was pretty misleading. So did other judges in Pennsylvania and Oregon.

[1] https://www.youtube.com/watch?v=K8UV7SAhvG4&list=RDK8UV7SAhv...