Louisiana has filed suit against State Farm Insurance, claiming the insurer's Select Service and Parts Trader services illegally manipulated markets by controlling rates and strong-arming repair shops to use unsafe used or recycled auto parts.
The suit alleges State Farm falsely tricked consumers to work with auto body shops that have signed contracts with the insurance provider, and also pressures body shops to do repairs within a shorter time frame out of accordance with known estimate times.
“State Farm has created a culture of unsafe business practices in which consumer vehicle repairs are performed with cost-savings as the primary goal rather than safety and reliability,” says Louisiana Attorney General James D. “Buddy” Caldwell in a statement.
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