Business ProfileforMercedes Benz of Anchorage

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the governments allegations, which have not yet been proven.

On August 9, 2023 in the Superior Court for the State of Alaska Third Judicial District at Anchorage, the State of Alaska, through the Office of the Attorney General filed a lawsuit against Swickard Anchorage, LLC; Swickard Anchorage II, LLC; Swickard PAV, LLC and Swickard Palmer, LLC (collectively “Swickard”), for alleged violations of consumer protection laws. Swickard operates car dealerships in Anchorage and Palmer.

The complaint alleges that Swickard engages in unfair and deceptive advertising practices, including advertising vehicles it does not possess to drive foot traffic to its lots and refuses to honor advertised prices.

The Swickard companies were incorporated and began doing business in Alaska between 2020 and 2022, according to records on file with the Department of Commerce, Community, and Economic Development, (DCCED).

According to the complaint, the Alaska Department of Law Consumer Protection Unit, (CPU), received three well-documented complaints from consumers in late 2022 and early 2023, alleging that Swickard dealerships engaged in false advertising tactics. Swickard responded to inquiries from CPU by claiming that two false advertisements were published unintentionally and that the third advertisement was accurate, but that a single, overzealous salesperson refused to honor it.

However, the complaint states that an undercover investigation by CPU revealed that Swickard regularly engages in unfair and deceptive business practices. The complaint states that two forms of false advertising stand out as a core part of Swickard’s business and advertising model.

First, on its website, Swickard advertises vehicles—specifically identified by vehicle identification number or “VIN”—at affordable prices. But in fact, Swickard does not possess the advertised vehicles, does not possess any other new vehicles of the same make and model and does not expect to acquire any new vehicles of the same make and model in the near future. Swickard posts these false advertisements to its website for the purpose of bringing customers onto the lot, then selling those customers a different model at a price well above the Manufacturer’s Suggested Retail Price (“MSRP”)—a classic bait-and-switch tactic.

Second, Swickard continuously advertises vehicles for sale on its website at or below MSRP but refuses to sell the vehicles at the advertised prices. Typically, Swickard’s employees explain to prospective customers that despite the online advertisements, they will not allow the customers to purchase the vehicles unless the customers also purchase expensive dealer add-ons, such as extra warranties, ceramic coating, dent and ding protection, and door edge guards and cups, which are not disclosed in the online advertisements.

The complaint alleges that both consumers and Swickard’s own employees have complained to Swickard about these unfair and deceptive advertising practices, but Swickard refuses to change its conduct.

The complaint asks the court to award the State civil penalties of $25,000 for each violation of Alaska’s Unfair Trade Practices and Consumer Protection Act and an injunction to stop Swickard’s illegal conduct.

Attorney General Taylor recommends that potential car buyers take time to seriously consider the purchase price, interest rate, and monthly payment before purchasing a vehicle and don’t allow anyone to rush you into a decision.

The Swickard companies are registered with DCCED to do business in Alaska under the following names:

• Mercedes Benz of Anchorage
• Swickard Chevrolet Buick GMC Cadillac of Anchorage
• Swickard Buick GMC of Anchorage
• Swickard Cadillac of Anchorage
• Swickard Buick GMC of Anchorage
• Swickard Cadillac of Anchorage
• Swickard Chevrolet Buick GMC of Anchorage
• Porsche Anchorage
• Audi Anchorage
• Swickard Volkswagen of Anchorage
• Swickard Buick GMC of Palmer
• Swickard GMC of Palmer

For more information, please contact the State of Alaska Department of Law at https://law.alaska.gov/ or 907-269-5100.