Discrepancies over document fees have landed an Alaska independent dealer into a $500,000 settlement with the state’s attorney general.

Acting Alaska attorney general Cori Mills announced a settlement last week with Payless Used Car Sales over document fees that the store did not include in prices it advertised online.

Under Alaska law, dealers must include all dealer fees in the advertised price of their vehicles.

Through this settlement, consumers who were charged fees by Payless will be eligible for $100 payments from the dealership.

The state estimated that Payless will pay more than $500,000 in restitution.

Payless is required to provide the state with a final report of the number of people owed restitution within 90 days of court approval of the settlement.

According to a news release, Payless has 280 days from court approval to complete the process of identifying, contacting, and providing a check to more than 5,000 impacted consumers.

“Alaska’s law on dealer fees is clear,” Mills said in the news release. “It is unacceptable for a business to offer one price online and then a higher price at the dealership as a result of tacking on previously undisclosed dealer fees.”

The period where consumers are entitled to restitution extends back to Nov. 4, 2018.

Officials explained this “exceptionally” long restitution period exists in part because Payless and the state agreed to pause the running of the state’s six-year statute of limitations while Payless unsuccessfully attempted to quash an investigative subpoena issued by the Alaska AG.

The vast majority of the illegal fees were charged prior to 2024, according to officials.

Officials added Payless’s document fees were generally $499. The state chose to accept less than full restitution to avoid putting Payless out of business.

“This is the first time my office has had a serious issue with Payless,” Mills said, “and sometimes our team has to make a call about whether a stronger settlement is worth putting a significant number of Alaskans out of work — many of whom had nothing to do with the conduct at issue.”