Michigan’s Attorney General has filed a lawsuit against ATRS, a Texas-headquartered company that owns and operates 251 clothing donation bins in the state, for deceptively operating the collection bins.
The bins state that the Michigan Humane Society “receives 100% of the market value of every donation received at this location.” However, by contract, ATRS pays the Michigan Humane Society just $.02 per pound, according to a statement issued by the Attorney General Bill Schuette.
Mr Schuette says in the claim that, for 2016, donations to the bins generated $835k in revenue for ATRS, an average of $0.34 per pound; ATRS paid the Michigan Humane Society $49k ($0.02 per pound) for these items, which equals just 6% of revenue generated from the bins. “These bins are deceptive and have misled Michigan residents regarding the true beneficiary of the donated clothes,” says Schuette. The lawsuit seeks restitution, civil penalties of up to $10,000 per violation, and other relief.