When a state attorney general wants a dealer’s documents, chances are they will get them. The Alaska Supreme Court reinforced that point earlier this month when it upheld the AG’s authority to subpoena records in consumer protection investigations, even when the probe began with an anonymous letter.
The Case
An anonymous complaint accused an Alaska dealership of advertising one price but adding hidden fees at the point of sale. After sending in an undercover investigator, the Consumer Protection Unit issued a subpoena to test whether the dealer was complying with AS 45.25.440, which requires all dealer fees to be included in the advertised price.
The dealership refused and asked the court to block the subpoena, arguing that an anonymous tip was not reliable and that the AG lacked “cause to believe” a violation had occurred. The Alaska Supreme Court rejected that argument. Even if the stricter standard applied, the justices held that the anonymous letter was enough to justify the subpoena. The case was filed as Business Doe, LLC v. State of Alaska because state law keeps the identity of targeted businesses confidential in consumer protection matters.
Why It Matters
The decision has broader implications for dealers:
- Investigative power is broad. Attorneys general can compel records with relatively little showing, and courts usually side with them.
- Anonymity rules differ. Alaska allowed the dealer to fight the subpoena anonymously. In other states, businesses have been required to litigate under their real names.
- One complaint is enough. A single letter triggered a full investigation. Dealers cannot afford to dismiss complaints, even if they seem minor or anonymous.
The Dealer Takeaway
Price advertising is still one of the highest risk areas in dealership compliance. Hidden or add-on fees outside the advertised price can quickly draw scrutiny, and once the AG comes calling, subpoenas are difficult to fight. Dealers should treat every consumer complaint as a potential trigger for an investigation, keep advertising clean, and maintain organized records. When regulators have the power to ask, they also have the power to get.
How ComplyAuto Helps
Cases like this highlight why proactive compliance matters. ComplyAuto Guardian continuously scans dealership advertising for risky practices such as hidden fees or pricing disclosures that do not match state law before regulators or consumers raise concerns. By identifying issues early and giving dealers the tools to correct them, Guardian helps dealerships avoid the kind of investigation that started here with a single letter.