Liberty Mutual has settled a case brought against it by three district attorneys’ offices in California. The lawsuit alleged that the insurance company’s nationwide “accident forgiveness” ad campaign violated California law requiring advertising to clearly and conspicuously disclose any material facts viewers need to avoid being misled. The advertisements touted the accident forgiveness benefit but failed to sufficiently alert viewers that the program was not available to California residents. While the ads did contain a “small disclaimer briefly visible at the bottom of the screen,” the complaint alleged this was insufficient notice.
The San Diego County District Attorney’s office announced the settlement last week. The terms of the settlement require Liberty Mutual to pay $925,000 and to bring its advertising into compliance with California law.