Citing potential violation of federal law by GoFundMe Inc., GOP lawmakers have called for an investigation into the crowdfunding platform’s decision to withdraw a page accepting donations in support of protesting truckdrivers in Canada.
In a letter to the Federal Trade Commission (FTC) on Sunday (Feb. 6), Sen. Ted Cruz (R-Texas) asked regulators to probe allegations that GoFundMe committed a deceptive trade practice when they deleted the “Freedom Convoy 2022 Fundraiser.” The campaign was launched to support protesting truckers in Canada who oppose government lockdowns in response to the pandemic.
GoFundMe said they took the action last week at the request of the Canadian government. Cruz told Politico that “GoFundMe at the explicit behest of the Canadian government tried to effectively steal $10 million that had been raised to support the Canadian truckers.”
Originally, the fundraising platform said they would distribute the cash to charities, but later agreed to return the donations to donors.
“I am requesting that the Commission immediately open an investigation into the practices of GoFundMe and whether those practices constitute a violation of the statutory prohibition against unfair or deceptive acts or practices,” Cruz wrote.
Cruz is not alone in his criticism of Go Fund Me. Florida Republican Gov. Ron DeSantis and Texas Attorney General Ken Paxton, also a Republican, have joined in.
“This BLM-backing company went woke, froze the funds, & failed to deliver Texans’ money,” Paxton tweeted. “Today I assembled a team to investigate their potential fraud & deception.”
Patriotic Texans donated to Canadian truckers’ worthy cause using GoFundMe. This BLM-backing company went woke, froze the funds, & failed to deliver Texans’ money. Today I assembled a team to investigate their potential fraud & deception. Texas donors will get Justice! #GoFundMe
— Attorney General Ken Paxton (@KenPaxtonTX) February 5, 2022
Last month, GoFundMe said it will acquire Classy, a nonprofit fundraising software company.
Read more: GoFundMe Acquiring Nonprofit Software Firm Classy
The addition of Classy accelerates opportunities to service the nearly $500 billion U.S. philanthropic market as GoFundMe aims to be the most helpful place in the world,” the company said.
Last year, Classy’s platform oversaw $1 billion in donations, bringing the site’s all-time donations close to $4.4 billion.
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