The State Settles with Lithia Motors, Inc. on Fees Not Included in Advertised Price

December 29, 2025

(Anchorage, AK) - Alaska Attorney General Stephen Cox announced today that an investigation by the Department of Law's Consumer Protection Unit into dealer fees and misleading advertising by five Lithia dealerships in Alaska has ended in a settlement that will require Lithia to make restitution to consumers, pay a civil penalty of $300,000, and regularly audit its advertisements to ensure that they comply with Alaska's laws.

"There is no excuse for a dealership in Alaska to charge its customers dealer fees that aren't included in its advertised prices," said Attorney General Cox. "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. That said, Lithia deserves credit: 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."

Under Alaska law, a dealer must include all dealer fees (such as "document fees") in the advertised price for a vehicle. While only a relatively small proportion 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. Lithia has agreed to review its sales records back to Jan. 3, 2019, to identify and pay restitution to consumers who paid more than the advertised price for a car. Lithia is required to complete the process of identifying, notifying, and paying consumers within 270 days of the settlement's approval by a judge of the Anchorage Superior Court.

Lithia has identified certain periods of time for which its dealerships do not possess sales records. People who bought a car during the following periods will have to take action to claim restitution:

• Lithia of Anchorage, Inc. dba Lithia Chrysler Dodge Jeep Ram Fiat of Anchorage, aka Lithia Superstore South Anchorage, from Jan. 3, 2019, to Nov. 30, 2019.
• Lithia of Wasilla, LLC dba Lithia Chrysler Jeep Dodge Ram of Wasilla from Jan. 3, 2019, to March 31, 2021.
• Lithia of South Central AK, Inc. dba Chevrolet of South Anchorage from Jan. 3, 2019, to Feb. 28, 2021.

Consumers who bought a vehicle during the periods described above will only receive restitution if they email the following documents to [email protected], [email protected], and [email protected] within 100 days of the Court's approval of the settlement, which the State anticipates within the next several weeks.

1. A copy of the consumer's contract demonstrating that the consumer paid a document fee to a Lithia dealership listed above, during a time period listed above;
2. A signed and notarized affidavit by the consumer stating that the consumer personally viewed an advertisement for the vehicle they purchased, which stated a price less than the sum of the price and document fee reflected in the contract, minus any optional accessories and add-ons; and
3. A mailing address where a restitution check should be sent.

Consumers who have questions about this settlement can contact the Alaska Department of Law's Consumer Protection Unit at 907-269-5200 or at [email protected].

Read the Assurance of Voluntary Compliance.

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Department Media Contacts: Communications Director Patty Sullivan at [email protected] or (907) 269-6368. Information Officer Sam Curtis at [email protected] or (907) 269-6269.