Alaska Consumer Protection Laws: Lemon Law, Refunds, Repairs and Scams

Alaska's Motor Vehicle Warranties Act covers new four-wheel vehicles normally used for personal, family or household purposes (not tractors, farm or off-road vehicles). If the manufacturer or dealer cannot fix a defect that substantially impairs use or market value after a reasonable number of attempts during the warranty or within one year of delivery, whichever ends first, the manufacturer must, at the owner's choice, replace the vehicle or refund the full purchase price minus a reasonable allowance for use. A reasonable number of attempts is presumed after three or more repairs of the same problem, or 30 or more business days out of service, within that period. The owner must send written notice by certified mail within 60 days after the warranty or one-year period ends; the manufacturer may make one final repair attempt within 30 days of the notice.

The lemon law covers new vehicles only. The Department of Law advises "buyer beware" for used cars: there are very few laws protecting used-car buyers, especially when a car is sold "as is." Dealers must disclose the accident and repair history reported by the prior owner of a vehicle taken in trade.

For a door-to-door sale of $10 or more (solicited in person or by phone and agreed to away from the seller's place of business), the buyer may revoke within five business days, and the seller must give written notice of that right at the time of sale. The seller pays the cost of returning goods. There is no cooling-off period for car purchases.

The Alaska Consumer Protection Act (AS 45.50.471–45.50.561) bans unfair methods of competition and unfair or deceptive acts in trade or commerce. A person who loses money or property because of a violation may sue for three times actual damages or $500, whichever is greater, for each violation, and the court may order other relief. The suit must be filed within two years after the person discovers, or reasonably should have discovered, the loss.

On the customer's request before work begins, a repair shop must give a dated repair order and a good-faith price estimate. The shop may not exceed the estimate without the customer's approval; if the price will go over, or if extra repairs are needed, the shop must call the customer, give a new estimate, and get written or oral authorization. Replaced parts must be returned if requested when the order is taken (warranty or exchange parts must be shown instead). The shop must give an itemized invoice and post a sign explaining these rights, and may not charge for unauthorized repairs or keep the car because the customer refused to pay for them.

A person may not bid or work as a contractor without a certificate of registration from the state. The Department of Law says most contractors doing residential home improvements must be licensed by the Division of Corporations, Business and Professional Licensing, and that general contractors must post a $25,000 bond and specialty contractors a $10,000 bond. Home improvement contracts signed at home are subject to the five-business-day door-to-door cancellation right.

A business or other covered person that owns or licenses personal information of Alaska residents must notify each affected resident of a security breach in the most expeditious time possible and without unreasonable delay. Notice is not required if, after an appropriate investigation and written notice to the Attorney General, the business determines there is no reasonable likelihood of harm; that determination must be documented and kept for five years. Notice may be delayed if law enforcement says it would interfere with a criminal investigation. If more than 1,000 residents must be notified, the nationwide credit reporting agencies must also be told.

File a consumer complaint with the Department of Law's Consumer Protection Unit using its complaint form, attaching contracts, invoices or receipts. In most cases the unit forwards the complaint to the business and tries to resolve it through informal mediation; it does not act as your private lawyer. Questions: 907-269-5200, or toll free outside Anchorage 1-888-576-2529, or consumerprotection@alaska.gov.

1) Written notice: to claim a refund or replacement, the owner must send written notice by certified mail to the manufacturer and to its dealer or repairing agent. The notice must be sent before 60 days have passed after the express warranty ends or one year after delivery to the original owner, whichever ends first. It must state that the vehicle has a nonconformity, describe it, state that a reasonable number of repair attempts has been made, and demand a refund or replacement to be delivered on the 60th day after the notice is mailed. 2) Final repair attempt: within 30 days after receiving the notice, the manufacturer may make a final attempt to fix the vehicle. 3) Arbitration: Alaska has no state-run lemon law arbitration program. If the manufacturer has an informal dispute program that substantially complies with federal rules (16 C.F.R. Part 703), or offers in writing after receiving the notice to arbitrate or mediate with a decision binding on the manufacturer but not the owner, and the program is approved by the Attorney General, the owner must use it first before the refund/replacement and shipping-cost provisions apply. 4) Deadline: the lemon law sections do not state a separate deadline to file a lawsuit.