- Lithia charged fees that were not in the advertised car price.
- Affected buyers may be owed refunds for illegal extra charges.
- Dealer group must pay a $300,000 penalty and audit future ads.
Car shopping is rarely as straightforward as the sticker makes it seem, and in this case, it might have cost Alaskan buyers more than they realized. If you purchased a Stellantis or Chevy vehicle from one of five Lithia dealerships in Alaska any time since early 2019, you could be eligible for restitution.
A recent investigation by the state has found that several Lithia stores added fees to vehicle purchases that weren’t included in the advertised prices. That practice directly violates Alaska’s consumer protection laws, which require all dealer fees to be disclosed upfront in advertising.
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According to Alaska Attorney General Stephen Cox, while only a relatively small portion of Lithia’s sales failed to comply with the law, the Department’s investigation suggests that hundreds of consumers may have been charged fees illegally, dating back to early 2019.
The Cost of Non-Disclosure
Lithia has reached a settlement that requires it to pay back consumers who ended up spending more than the advertised price for their vehicle. On top of that, the dealer group will pay a $300,000 civil penalty and must conduct regular audits of its advertising to ensure it complies with state law.
Consumers identified as eligible must receive their payments within 270 days of judicial approval of the settlement, which is expected in the near future.
Unfortunately, the process won’t be entirely automatic. Due to missing records, some buyers will have to do the legwork to prove they’re owed money.
According to Alaska’s Department of Law, the Lithia Superstore South Anchorage has no sales records from January 3, 2019, to November 30, 2019. Similarly, the Lithia Chrysler Jeep Dodge Ram of Wasilla is missing records from January 3, 2019, through March 31, 2021. Chevrolet of South Anchorage also lacks documentation from January 3, 2019, to February 28, 2021.
What Those Buyers Need to Submit
Shoppers who purchased a vehicle from those dealerships during those timeframes will need to step in and supply their own documentation. Specifically, they’ll need to provide a copy of the original sales contract showing that a dealer fee was paid, along with a signed affidavit confirming they saw an advertisement for the vehicle at a lower price than they were ultimately charged.
“There is no excuse for a dealership in Alaska to charge its customers dealer fees that aren’t included in its advertised prices,” Attorney General Stephen Cox said. “Not only is this explicitly illegal under Alaska law, but it is also fundamentally deceptive to advertise one price online and then charge a higher one at the dealership.”
Cox added that while the conduct was unacceptable, Lithia responded appropriately once notified. “When our Consumer Protection Unit brought their concerns to their attention, Lithia took ownership of its mistakes, assisted in disclosing the extent of the problem, and worked cooperatively with our Consumer Protection Unit to establish a fair resolution,” he said.
