Allstate ad called misleading

Texans aren't happy with one of Allstate's latest ads. They claim the commercial is using fear tactics to get people to buy more car insurance or else risk losing their homes.

Tom Kelley, a spokesman for Texas Attorney General Greg Abbott, said the office may order Allstate to pull the plug on the ad, which started airing Aug. 22 nationwide.

Allstate officials said the commercial is meant only to alert homeowners to serious consequences that can result from inadequate auto insurance coverage.

"The ad is not intended to communicate that a forced sale of the home occurred," Allstate spokeswoman Kim Whitaker said in an e-mail response to the criticisms.

Texas law prohibits misleading advertising. The state attorney general's office is considering sending Allstate a letter with the ultimatium to make the spot more accurate by including Texas Homestead Law or pull it off air.

The reason for the Homestead Law is to protect people from losing their homes when they get sued.

A Texas homeowner would not likely be forced to sell his or her home because of damages from a car insurance lawsuit, he said. The Texas Constitution prohibits forced home sales except under very specific conditions that don't seem to take place in the commercial.

[...snip..]

Alex Winslow, executive director of consumer advocate group Texas Watch, sent letters Tuesday to Allstate President Edward Liddy and to Abbott, asking both to stop the commercials, which he called "deceptive and false."

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