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Attorney General Bill Schuette sued ATRS over collection bins benefiting Michigan Humane SocietyLabeling on collection bins was misleadingTexas-based clothing recycler to pay $75,000 fine, take corrective action Houston-based clothing donation bin operator ATRS Inc. was giving the Michigan Humane Society a smaller cut of clothing donations than billed, according to a lawsuit from Michigan Attorney General Bill Schuette. A Houston-based clothing recycling company has agreed to pay $75,000 and take corrective action after Michigan Attorney General Bill Schuette sued it for deceptively labeling charitable collection bins. ATRS, or American Textile Recycling Service, operates 251 clothing donation bins in the state for the Michigan Humane Society, according to news release from Schuette’s office. Stickers on its donation bins in areas including Detroit, Lansing, Jackson pbvw , Kalamazoo and Battle Creek stated that the Michigan Humane Society received 100 percent of the revenue generated from the donations, Crain’s previously reported. In fact, the charity gets just 2 cents per pound for the items donated in the bins, according to an agreement with ATRS. The company had since covered up the “100 percent” on the bin stickers, according to the release.Under ATRS’ settlement, it will pay a $75,000 fine and amend its clothing bins to state the correct amount donated to the Michigan Human Society. Another case last year involving donation bins misrepresented as benefiting charities had brought the ATRS situation to the attorney general’s office’s attention — in February 2017, the state fined Dearborn-based Golden Recyclers Inc. $35 high quality designer replica belts ,000 for collecting clothing through more than 300 locally placed bins to benefit itself rather than a charity, as the bins implied. The Society of St. Vincent de Paul Detroit and Maryland-based Planet Aid also sued ATRS in 2013, claiming the company had illegally seized and disposed of their clothing donation bins and replaced them with its own.

Fundraiser settles Michigan lawsuit over clothing donation bins

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