District Attorneys in 3 California counties have reached a $600,000 settlement in a lawsuit against Allstate Insurance Co. for false advertisement. The lawsuit stated that the company failed to disclose that the “accident forgiveness” benefits seen advertised on television are not available to customers in the State of California. According to the lawsuit these advertisements reach approximately 90% of California households with a television. Although Allstate’s ads included a small disclaimer at the bottom of the screen, the district attorneys argued that those disclaimers were “insufficient.” Allstate agreed to the terms of the judgment without admitting liability. The company agreed to pay $600,000, including $75,000 in investigative costs and $525,000 in civil penalties.
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