by A Problem for Buyers in Alaska
The process of buying a car is rarely as simple as it seems from the first glance at the price tag, and in this case, it may have cost buyers in Alaska more than they expected. If you purchased a Stellantis or Chevrolet vehicle from one of five Lithia dealerships in Alaska at any time since the beginning of 2019, you may be eligible for a refund.
A recent investigation by state authorities found that several Lithia dealerships were adding fees to the cost of vehicles that were not included in the advertised prices. This practice directly violates Alaska’s consumer protection laws, which require full disclosure of all dealer fees upfront in advertising.
According to Alaska Attorney General Steven Cox, while only a relatively small portion of Lithia’s sales were non-compliant, the Department’s investigation suggests that hundreds of consumers may have been burdened with illegal fees since the beginning of 2019.
Settlement Terms and Penalties
Lithia has reached a settlement agreement that obligates it to refund consumers who ended up paying more for their vehicle than the advertised price. Additionally, the dealership group will pay a $300,000 civil penalty and must conduct regular audits of its advertising practices to ensure compliance with state law.
Consumers deemed eligible for reimbursement should receive their payments within 270 days after the settlement is approved by the court, which is expected soon.
Unfortunately, the process will not be fully automatic. Due to a lack of records, some buyers will have to make their own efforts to prove they are owed money.
According to the Alaska Department of Law, the Lithia Superstore South Anchorage dealership lacks sales records from January 3, 2019, through November 30, 2019. Similarly, the Lithia Chrysler Jeep Dodge Ram of Wasilla dealership lacks records from January 3, 2019, through March 31, 2021. Chevrolet of South Anchorage also lacks documentation from January 3, 2019, through February 28, 2021.
What Buyers Need to Do for Reimbursement
Buyers who purchased a vehicle from these dealerships during the specified periods will have to intervene and provide their own documentation. Specifically, they will need to provide a copy of the original purchase agreement showing that a dealer fee was paid, along with a signed affidavit confirming that they saw the vehicle advertised at a lower price than the one they were ultimately billed.
“There is no excuse for an Alaska car dealership to charge its customers dealer fees that are not included in advertised prices,” stated Attorney General Steven Cox. “This is not only directly prohibited by Alaska law, but it is fundamentally deceptive to advertise one price online and then bill a higher one at the dealership.”
Cox added that while this behavior was unacceptable, Lithia responded appropriately after being notified. “When our Consumer Protection Unit brought its concerns to them, Lithia took responsibility for its mistakes, helped uncover the scope of the problem, and cooperated with our Consumer Protection Unit to establish a fair resolution,” he said.
This situation in Alaska highlights the importance of consumer vigilance and clarity from sellers, especially in a significant market like the automotive one. Although the company has made concessions and agreed to compensation, the process itself may prove quite complicated for those who did not keep all their documents. Such cases often become a reason for reviewing business processes not only within a single network but for the entire market, prompting greater transparency in advertising and contracts. For buyers, it remains a key skill to carefully study all the terms of the deal and keep documentation, as it can become the primary evidence in such situations.
