More than 5,000 customers are expected to receive restitution after Alaska officials said a dealer advertised vehicles without including its document fee.
An Alaska used-car dealer is expected to pay more than $500,000 in restitution to customers over document fees that were not included in the advertised prices of its vehicles.
The Alaska Attorney General’s Office announced Sept. 22 that it had reached a settlement with Payless Used Car Sales, LLC, saying the dealer advertised vehicles on its website without including its generally $499 document fee in the advertised price.
Alaska law requires dealers to include dealer fees in an advertised vehicle price, with exceptions for government charges such as title, licensing and registration fees. The state specifically identifies document and preparation fees as dealer charges that must be included in the advertised price.
Under the settlement, eligible customers will receive $100 payments The state estimates that more than 5,000 customers will be affected, with the restitution period extending back to Nov. 4, 2018. The state said the vast majority of the fees at issue were charged before 2024.
The settlement is notable because the state said it agreed to accept less than full restitution in part to avoid putting Payless out of business. The dealer will have 280 days after court approval to identify, contact and pay affected customers. The dealership also has a generally strong customer-review record across several major automotive and review platforms, with customers frequently citing its staff, communication and buying experience.
Dealer takeaway
For dealers, the case is another reminder that advertised pricing can become a consumer-protection issue when mandatory dealer charges are added later in the transaction.
And Alaska has been active on this issue. In March, the state reached an $800,000 settlement with Swickard dealerships over allegations including advertising vehicles that were not available, failing to honor advertised prices and requiring undisclosed dealer add-ons. That settlement also included a suspended additional $200,000 penalty if certain violations continue.
The Alaska cases are state-specific, but the lesson for dealers is broader: know exactly which fees must be included in an advertised price where you operate.
