Court Rejects Texas Rules on Solicitation Disclosure

iStock

Enlarge Image

By Grant Williams

A federal court judge has struck down key parts of a new Texas law that applied to companies that solicit and resell donations of clothing and other household items on behalf of charities.

Under the law, companies that solicit or collect donations of goods for charities by telephone, by mail, door-to-door, or by using parking-lot donation bins had to disclose the amount of money that goes to charities—and specify whether that sum was a set percentage of the proceeds or a flat