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CHICAGO (AP) - Berkshire Hathaway Inc.'s Geico Corp. insurance unit has come under attack by a consumer advocacy group and competitor for a pricing practice the opponents feel can shortchange less profitable customers, including minorities and blue-collar workers.
The Consumer Federation of America and the New Jersey Citizens United Reciprocal Exchange, a private insurer, are taking aim at the fourth-largest U.S. auto insurer for using the education and profession of potential customers as criteria to offer and price auto insurance policies. The two groups argue this practice is discriminatory in favor of more affluent customers and could hike prices for lower-wage workers, and called for a nationwide ban.
Geico has rebuffed criticism by defending the practice as being widespread and useful for determining risk.
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