Jackie Lacey
Los Angeles County District Attorney Jackie Lacey announced a $600,000 settlement with Allstate Insurance Company for falsely advertising its auto accident forgiveness program in California.
The civil complaint alleges false advertising and unfair competition by the Illinois-based insurance company. The lawsuit was filed last week in Riverside County Superior Court by district attorneys in Los Angeles, Riverside and San Diego counties.
Prosecutors said Allstate launched a nationwide television ad campaign several years ago claiming its “accident forgiveness” program could protect motorists from having their insurance rates increase if they are responsible for an accident.
However, state consumer protection laws do not allow accident forgiveness programs in California.
Under the terms of the judgment, an injunction will be filed against Allstate requiring full compliance with state law with its accident forgiveness advertising, including disclosure of the fact that such programs are not available in California.
The company admits no wrongdoing as part of the agreement.
The $600,000 settlement will be split among the three counties.
The case was handled for the Los Angeles County District Attorney’s Office by Deputy District Attorney Ellen Aragon of the Consumer Protection Division.
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2 Comments
I wonder how the $600,000. will be divided? Will it go to those who have had accidents and weren’t forgiven?
It already says not available in all states at the beginning of the ad.