Stellantis and Chevy dealerships in Alaska promoted a single price but later billed a different amount | Carscoops

      Lithia is required to reimburse Alaskan customers for undisclosed dealer fees and to pay a civil penalty. However, due to missing records, some consumers will need to provide proof.

      9 hours ago

      by Brad Anderson

      Lithia imposed fees that were not included in the advertised vehicle prices.

      Affected consumers may be entitled to refunds for these illegal additional charges.

      The dealer group must pay a $300,000 fine and conduct audits of future advertisements.

      Car buying is seldom as simple as the price sticker suggests, and in this instance, it may have cost Alaskan consumers more than they realized. If you bought a Stellantis or Chevy vehicle from one of five Lithia dealerships in Alaska since early 2019, you might be eligible for compensation.

      A recent state investigation revealed that several Lithia dealerships added fees to vehicle transactions that were not disclosed in the advertised prices. This practice is a direct violation of Alaska’s consumer protection laws, which mandate that all dealer fees be clearly stated in advertising.

      According to Alaska Attorney General Stephen Cox, although a relatively small fraction of Lithia’s sales were not compliant with the law, the Department’s investigation indicates that hundreds of consumers may have been improperly charged fees since early 2019.

      The Consequences of Non-Disclosure

      Lithia has settled, agreeing to refund consumers who paid more than the advertised vehicle prices. Additionally, the dealer group will pay a $300,000 civil penalty and must perform regular audits of its advertising to ensure adherence to state regulations.

      Consumers deemed eligible must receive their refunds within 270 days of judicial approval of the settlement, which is anticipated shortly.

      Unfortunately, the process will not be completely automated. Due to incomplete records, some buyers will need to take initiative to demonstrate that they are owed money.

      Alaska’s Department of Law revealed that Lithia Superstore South Anchorage lacks sales records from January 3, 2019, to November 30, 2019. Likewise, Lithia Chrysler Jeep Dodge Ram of Wasilla is missing documentation from January 3, 2019, to March 31, 2021. Chevrolet of South Anchorage also does not have records from January 3, 2019, to February 28, 2021.

      What Buyers Need to Provide

      Consumers who purchased vehicles from these dealerships during the specified periods will need to take action and provide their own documentation. They must submit a copy of the original sales contract showing that a dealer fee was paid, along with a signed affidavit confirming that they encountered an advertisement for the vehicle at a lower price than what they were ultimately billed.

      Attorney General Stephen Cox stated, “There is no justification for a dealership in Alaska to charge customers dealer fees not included in their advertised prices. This is not only clearly illegal under Alaska law, but it is also fundamentally misleading to promote one price online and then charge a higher one at the dealership.”

      Cox added that while the behavior was unacceptable, Lithia acted appropriately once made aware of the issue. “When our Consumer Protection Unit brought their concerns to their attention, Lithia acknowledged its errors, helped disclose the extent of the problem, and worked cooperatively with our Consumer Protection Unit to reach a fair resolution,” he said.