Four states are investigating GoFundMe after fundraising service banned donations to a protesting trucker organization COVID-19 pandemic restrictions in Canada.
Texas Attorney General Ken Paxton said Wednesday that his office will investigate GoFundMe for blocking and withholding donations already made to the platform through its website. Removing the campaign from its site could violate the state’s Misleading Business Practices Act, he said.
“GoFundMe’s response to a move against the mandate and in favor of freedom should sound the alarm to anyone using the donation platform and, more broadly, to any American who wants to protect their constitutional rights. Attorney General Paxton said in a statement. “Many Texans made donations to this worthy cause. I’m working to protect Texas consumers so they know where their hard-earned money is going, instead of allowing GoFundMe to divert money to another cause without the consent of Texas citizens.” .
Why GoFundMe says it blocked donations
GoFundMe announced last week that it would stop any fundraising that violates its terms of service, including campaigns that tolerate violence. On February 4, GoFundMe said it was removing the “Freedom Convoy” campaign from Canadian truckers protesting vaccine warrants and other COVID-19 restrictions. after determining that the demonstrations had become what the company called an “occupation”, citing “police allegations of violence and other illicit activities”.
GoFundMe initially said it would give supporters of the defunct campaign, which raised about $ 8 million, through Feb. 19 to claim refunds. He also said he would direct any remaining donations to “credible and established charities chosen by the organizers of Freedom Convoy 2022 and verified by GoFundMe.”
But the company later reversed course, saying it would automatically reimburse campaign supporters to simplify the process. Donors can expect refunds within 10 business days, according to GoFundMe.
Homeland Security warns that US truck drivers are planning a protest against COVID-19 similar to the Canadian convoy
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Florida, Missouri, and West Virginia are also investigating GoFundMe’s management of the Freedom Convoy campaign. Missouri Attorney General Eric Schmitt alleged that GoFundMe is trying to silence the group, while Florida Gov. Ron DeSantis accused the company of fraud when he said it would allocate funds to other charities.
“It’s a scam for @gofundme to ask for $ 9 million in donations sent to support truckers and give them to the causes they choose themselves,” the governor wrote on Twitter. “I will work with @AGAshleyMoody to investigate these misleading practices; these donors should be reimbursed.”
It’s a scam for @gofundme to solicit $ 9 million in donations sent to support truckers and donate them to causes they choose themselves.
I will work with @AGAshleyMoody to investigate these misleading practices: These donors should receive a refund.
– Ron DeSantis (@GovRonDeSantis) February 5, 2022
West Virginia Attorney General Patrick Morrisey also said GoFundMe’s initial plan to redirect money violated state law and asked residents to report any deceptive act or practice of GoFundMe.
“Will #GoFundMe now not honor #FreedomConvoy donations and redirect to other charities? In WV, organizations should not deceive donors and engage in misleading advertising practices. If you have been the victim of an act or misleading practice, let us know. ” Morrisey wrote on Twitter before the company pledged to automatically reimburse employees.
GoFundMe did not immediately respond to a request for CBS MoneyWatch comments on the investigation.
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