By combining the results of muon spin relaxation and inelastic neutron scattering in the heavy fermion compounds Ce1-xLaxAl3 (0.0<or=x<or=0.2), we show that static magnetic correlations are suppressed above a characteristic temperature, T*, by electronic dissipation rather than by thermal disorder. Below T*, an energy gap opens in the single-ion magnetic response in agreement with the predictions of the anisotropic Kondo model. Scaling arguments suggest that similar behavior may underlie the "hidden order" in URu2Si2.