Allstate Insurance Co. has agreed to pay $600,000 in a legal settlement involving its “Accident Forgiveness” television ads.
The settlement was part of a civil complaint claiming the insurance company’s advertising violated California law.
The San Diego County District Attorney’s Office announced the settlement with Allstate Wednesday.
The Illinois-based insurance company claimed its ad campaign featuring the “accident forgiveness” benefit reached 90 percent of the households in California.
Under California’s Proposition 103, it’s illegal for insurance companies to offer that benefit in California.
Allstate included a visual disclaimer on the television ad but the District Attorney’s Office said that California law “requires that all advertising must clearly and conspicuously disclose any material facts that viewers need to avoid being misled.”
San Diego will receive one-third of the settlement amount.
