FTC, Connecticut settle with Manchester City Nissan over fee allegations
The FTC and Connecticut said the dealership and its owners and managers will pay $4 million and change pricing practices after allegations involving certified pre-owned cars and hidden charges.
The Federal Trade Commission and the state of Connecticut said Tuesday they secured a $4 million settlement with Chase Nissan LLC, which does business as Manchester City Nissan, over allegations that the Manchester, Connecticut, dealership used unauthorized and misleading vehicle-fee practices.
According to the FTC’s press release, the case stems from a January 2024 lawsuit by the FTC and Connecticut against Chase Nissan LLC, its owners and managers. The agencies alleged the dealership double-charged some customers for “certified pre-owned” vehicles and collected other fees without consumer authorization.
The release said the dealership’s own data allegedly showed customers were frequently charged thousands of dollars in unlawful fees. It said some consumers were told they had to pay to “certify” used cars that had already been advertised as “certified pre-owned.” It also said total loss protection charges were inserted into financing agreements without consumers’ knowledge or consent.
Under the proposed order, the defendants must refrain from misrepresentations about whether vehicles are certified or include a limited manufacturer warranty. The order also requires the dealer to clearly and conspicuously disclose the maximum total price a consumer must pay for a vehicle, excluding only required government charges, and to obtain express, informed consent for all charges.
The FTC said the Commission voted 2-0 to approve the stipulated final order, which was filed in the U.S. District Court for the District of Connecticut.
FTC Bureau of Consumer Protection Director Christopher Mufarrige said the settlement is “another critical step” in the agency’s goal of advancing price transparency in the auto marketplace. Connecticut Attorney General William Tong said the dealership “systematically ripped-off Connecticut customers through needless, unauthorized junk fees.”
The FTC said the lead attorney on the matter is Sam Jacobson of the agency’s Bureau of Consumer Protection. The court filing will determine the next steps for the settlement.
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Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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