On the Dash:
- Lithia Motors agreed to pay $300,000 and provide restitution in a pricing settlement with Alaska regulators.
- The state alleged dealerships failed to include dealer fees in advertised prices and misused MSRP in listings.
- Lithia must improve price transparency and clearly disclose when ads reflect MSRP rather than actual sale prices.
Lithia Motors has agreed to pay $300,000 in civil penalties and costs, and to provide restitution to consumers, as part of a settlement with the Alaska Department of Law over allegations that several dealerships misled buyers about vehicle pricing.
Alaska Attorney General Stephen Cox announced the settlement last month, resolving claims involving five Lithia dealerships in the state.
Under the agreement, Lithia will provide restitution to affected consumers, pay the $300,000 civil penalty, and implement regular audits of its advertising to ensure compliance with Alaska law, according to the Attorney General’s Office.
The investigation, led by the Alaska Department of Law Consumer Protection Unit, found that some Lithia dealerships charged customers dealer fees, including document fees, that were not included in advertised vehicle prices. Alaska law requires all mandatory dealer fees to be included in advertised prices.
“There is no excuse for a dealership in Alaska to charge its customers dealer fees that aren’t included in its advertised prices,” Cox said in a statement. He added that, while the violations affected only a small portion of Lithia’s overall sales, the practice was illegal and deceptive.
State officials estimate that hundreds of consumers may have been charged more than the advertised price. As part of the settlement, Lithia agreed to review sales records dating back to Jan. 3, 2019, to identify customers eligible for restitution.
Lithia must complete the process of identifying, notifying, and paying affected consumers within 270 days of approval by a judge of the Anchorage Superior Court.
For certain periods, Lithia said it does not have complete sales records. Consumers who purchased vehicles during those time frames will need to submit documentation to claim restitution. The affected dealerships and periods include:
- Lithia Chrysler Jeep Dodge Ram of Wasilla from Jan. 3, 2019, to March 31, 2021
- Lithia Chrysler Dodge Jeep Ram Fiat of Anchorage from Jan. 3, 2019, to Nov. 30, 2019
- Chevrolet of South Anchorage from Jan. 3, 2019, to Feb. 28, 2021
To receive restitution, eligible consumers must submit a signed, notarized affidavit stating they viewed an advertisement showing a lower price than the price ultimately charged, along with a copy of their purchase contract and a mailing address for payment.
The required documents must be submitted within 100 days of the court’s approval of the settlement. The state expects approval within the coming weeks.
