Critical Shifts:
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Zero Tolerance for "Phantom" Inventory: Regulatory bodies are aggressively targeting "bait-and-switch" tactics. Advertising vehicles that are not physically available for purchase specifically to drive lot traffic is a primary trigger for state investigations.
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Mandatory Disclosure of Add-ons: The settlement highlights that the advertised price must be the actual price. Requiring customers to purchase "hard-add" items like ceramic coatings, dent protection, or extended warranties that were not disclosed in the initial advertisement is a direct violation of consumer protection laws.
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Strict Documentation of Vehicle History: A major portion of the legal findings centered on the failure to obtain and provide signed vehicle condition statements for used cars. Dealers are legally required to secure a disclosure from the previous owner regarding accident and repair history and pass that exact documentation to the next buyer.
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Alaska Attorney General Stephen Cox announced the settlement of the State’s consumer protection lawsuit against Swickard Anchorage, LLC, Swickard Anchorage II, LLC, Swickard PAV, LLC, Swickard Palmer, LLC, and Swickard Management Company (collectively “Swickard”) for violating consumer protection laws.
Swickard operates car dealerships in Anchorage and Palmer.
The complaint, which was filed in Anchorage Superior Court, alleged that Swickard engaged in unfair and deceptive advertising practices, including advertising vehicles that were not actually available for purchase to draw customers to its lot. Swickard also refused to honor advertised prices once consumers arrived, requiring consumers to purchase expensive dealer add-ons that were not disclosed in the online advertisements, such as extra warranties, ceramic coating, dent and ding protection, and door edge guards and cups.
The Anchorage Superior Court found that Swickard purchased used vehicles from individual consumers without obtaining a signed statement describing the vehicle’s condition, including the accident and repair history. State law requires dealerships to secure this signed statement from sellers and then provide it to prospective buyers. Swickard’s failure to follow this process deprived consumers of information necessary to make informed purchasing decisions and violated AS 45.25.465 and AS 45.50.471(b)(43).
“Car dealers don’t get to advertise one price and charge another—or advertise cars that aren’t really there,” said Alaska Attorney General Stephen Cox. “That’s a bait-and-switch, and it’s unlawful. Alaskans already face higher costs than most—this settlement holds Swickard accountable and reinforces that the price you see should be the price you pay.”
Under this settlement, the defendants will pay a total civil penalty of $800,000, with an additional suspended penalty of $200,000 to be paid if Swickard engages in reckless or persistent violations of consumer protection laws in the next three years.
