Michigan Attorney General Bill Schuette announced Thursday that he is pursuing a lawsuit against a Texas-based clothing donation bin company - ATRS, Inc.
The bins claim that the Michigan Humane Society receives 100% of the market value of every donation received at this location.
After some research, the attorney general's office discovered that ATRS pays the Michigan Humane Society just $.02 per pound of clothing market value.
And in 2016, donations to the bins reached up to $835 thousand in revenue for the ATRS, an average of $.34 per pound yet the Humane Society only received $49 thousand for those items. That's just 6% of the revenue generated from the bins.
“These bins are deceptive and have misled Michigan residents regarding the true beneficiary of the donated clothes,” said Schuette. “Donors wanted to benefit the Michigan Humane Society—not some business in Texas. Michigan law requires that charitable solicitations be truthful. It’s not a lot to ask, and Michigan donors deserve this.”
The lawsuit seeks restitution, civil penalties of up to $10,000 per violation, and other relief.
ATRS owns and operates 251 clothing donation bins in Michigan.
