They really banned Kars for Kids? I heard they were shady, or whatever. Personally I keep cars alive.
They haven't banned the donation or collection. A judge ruled that their ads were deceptive by omission because they didn't expressly disclose that the donations went to an Orthodox Jewish charity during their ads. It was a bunch of other things too, including that it went to Orthodox Jewish summer camps only open to Jewish teens, that it went to Orthodox Jewish matchmaking services, and that they used the proceeds to purchase buildings in Israel. Also that almost none of the donations ended up benefiting anyone in California other than a very small program to donate backpacks with the Kars4Kids logo on them.
Mostly that they used ads with or implying that the recipients would be a diverse group of prepubescent kids when it was mostly going to benefit Orthodox Jewish high school aged kids.