The lies worked. Voters turned down the initiative by nearly two to one. All these reforms have since been advanced nationwide with no such disasters.
The media did not distinguish itself by separating the lies from the truth. Later in 1988, the media, led by the Los Angeles Times, did not let the auto insurance industry get away with lies about Prop 103, pushed by a $70 million television/radio buy. Prop 103 won and has saved California motorists over $100 billion according to leading actuary and consumer advocate J. Robert Hunter (see click here).
Corporate fibbing pays monetary rewards. Informed consumers, their champions and regulatory agencies at the national, state, and local level must continue to make these companies pay a price, especially over social media. Madison Avenue calls the effect of such pushback "reputational risk."
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