By Mark Sanborn
Senior Product and Regulatory Counsel
On January 23, 2025, Alaska Attorney General Treg Taylor announced a settlement with a dealership located in Anchorage, Alaska regarding document fees charged to customers that were not included in the online advertised price of vehicles. This case highlights a critical compliance issue that dealers across the country should take note of, especially in the current regulatory environment.
Background on the Alaska Attorney General Case
According to the settlement agreement, from March 10, 2022, to February 9, 2024, the dealer allegedly charged document fees to customers that were not included in the online advertised prices of its vehicles. While the dealership attributed this to “an error on the part of its third-party website manager,” Alaska law is clear: all dealer fees must be included in the advertised price for a vehicle.
The settlement requires the dealer to refund the $220 document fee to each affected customer who paid more than the online advertised price during the specified period. The dealership has 260 days from the court’s approval to identify affected consumers, contact them, and distribute refunds.
Why This Case Matters to Your Dealership
1. Third-Party Website Providers Don’t Shield You From Liability
This case demonstrates a crucial lesson for all dealers: you cannot rely on your website providers for advertising compliance. Despite the dealer’s explanation that the error was due to its third-party website manager, the dealership—not the website provider—faced regulatory action and financial penalties.
The settlement makes it clear that dealers bear ultimate responsibility for ensuring their advertisements comply with state laws, regardless of who manages their websites. This means you need to:
- Regularly audit your online listings to ensure compliance
- Implement verification processes for all advertised prices
- Maintain clear communication with website providers about legal requirements
- Conduct periodic compliance reviews of your digital advertising
2. Republican AGs Are Actively Enforcing Consumer Protection Laws
The Anchorage case is particularly significant because it demonstrates that Republican attorneys general are actively pursuing enforcement actions against car dealers even after the CARS Rule was struck down. Attorney General Treg Taylor, a Republican appointed by Governor Mike Dunleavy, did not hesitate to take action against what he perceived as deceptive advertising practices.
This enforcement action sends a clear message: the political shift in Washington and the striking down of the FTC’s CARS Rule do not mean dealers can relax their compliance efforts. State attorneys general from both parties continue to prioritize consumer protection in auto sales.
The Current Regulatory Landscape
The timing of this case is particularly noteworthy given recent developments in federal regulations. In January 2025, the Fifth Circuit Court of Appeals struck down the Federal Trade Commission’s Combatting Auto Retail Scams (CARS) Rule, which would have imposed new disclosure requirements and prohibited misrepresentations in auto sales.
However, dealers should understand that:
- The court’s decision was based on procedural grounds (the FTC’s failure to follow proper rulemaking procedures), not on the substance of the regulations
- The FTC retains authority to pursue enforcement actions against deceptive practices under existing laws
- State attorneys general continue to enforce state-level consumer protection laws
- The FTC has demonstrated its commitment to pursuing auto dealers for deceptive practices, securing a $20 million settlement with another dealer group in December 2024
Practical Steps for Your Dealership
To avoid similar regulatory actions, dealers should:
- Conduct a comprehensive review of all advertising practices, especially online listings
- Implement clear policies ensuring all non-governmental fees are included in advertised prices
- Train sales and marketing staff on compliance requirements
- Establish oversight procedures for third-party vendors
- Document compliance efforts to demonstrate good faith if questions arise
ComplyAuto Can Help
By taking proactive steps to review and strengthen your advertising practices, you can protect your dealership from regulatory action while building trust with consumers through transparent pricing.
ComplyAuto Guardian can assist with implementing these practical steps. Our AI-powered solution scans dealers’ websites for state and federal compliance issues, providing real-time alerts and recommendations to ensure your advertising practices meet all regulatory requirements. Don’t wait for a regulatory action to review your compliance—let ComplyAuto Guardian help you stay ahead of potential issues.