Issue:  2006-09-15

GEICO Pulls Misleading Ad

♦ Connecticut

HARTFORD, Conn., September 15 – GEICO has decided to pull a television advertisement that Attorney General Richard Blumenthal said was false and misleading.

The ad features the actress Charo with a GEICO consumer who claims that GEICO repaired [his car] within a few days, like new.

The commercials may give consumers the false impression that GEICO actually repairs cars directly, Blumenthal stated. Under state law, he added, GEICO is not permitted to repair motor vehicles without obtaining a motor vehicle repair license.

Blumenthal said that he was informed about the ad by leaders of the Auto Body Association of Connecticut, who also claimed that the ad is symptomatic of a larger problem in the industry where insurers allegedly steer business to preferred auto repairers.

Blumenthal has called on the Insurance Department to investigate that claim.

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