Michigan AG: Company Is Falsely Labeling Humane Society Clothing Donation Bins

LANSING (WWJ/AP) - Are your donations really going where you think they are?

Alleging deceptive practices, Michigan's attorney general wants a Texas-based clothing donation bin operator to change the way it labels bins for the Michigan Humane Society.

Bill Schuette's office says Friday that American Textile Recycling Service of Houston is falsely labeling around 250 clothing bins for the Michigan Humane Society by saying that the society gets 100 percent of the market value of every donation.

Schuette says the Michigan Humane Society got 6 percent of the market value in 2016, when the bins generated $835,000 in revenue for ATRS.

Schuette's notice to the company says there were more than 319,000 violations and a civil action could be brought.

"Michigan residents deserve to know if the donation they make will have an impact," said Schuette. "Due to the alleged deceptive marketing of this company, residents who donate to these bins across the state are led to believe that the Michigan Humane Society is getting a large amount of their donation which is untrue and cannot be tolerated."

The Associated Press sent an email seeking comment Friday from ATRS.

Schuette says this case came to the attention of the AG's Charitable Trust Section during the investigation of another professional fundraiser Golden Recycler — which recently agreed to pay $35,000 for deceptively operating its clothing donation bins.

Michigan residents with questions about a charity can call the AG's Charitable Trust Section at 517-373-1152.

© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.