FTC, Connecticut Secure $4 Million Settlement with Manchester City Nissan Over Deceptive Fees Allegations

The Federal Trade Commission and state of Connecticut today secured a $4 million settlement with a Manchester, Conn., auto dealer and its owners and managers resolving allegations the business was, among other things, double-charging for "certified pre-owned" vehicles and collecting other fees without consumer authorization.

In January 2024, the FTC and Connecticut sued Chase Nissan LLC, which did business as Manchester City Nissan, along with its owners and managers over unlawful conduct at the dealership.

"Today's settlement with Manchester City Nissan marks another critical step in the Commission's goal of advancing price transparency in the auto marketplace," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "Price transparency is essential for protecting consumers from deception and for preserving the integrity of competitive markets. When businesses compete openly and honestly, consumers benefit from better prices, higher quality and greater trust. The FTC remains committed to enforcing these principles across the marketplace, ensuring that every consumer can shop with confidence and every business can compete on a fair and equal footing."

The FTC and Connecticut alleged the dealership's own data show customers were frequently charged thousands in unlawful fees. For example, some consumers were told they had to pay to "certify" used cars that the dealership had advertised as already being "certified pre-owned." Other charges such as total loss protection were frequently inserted into financing agreements without the consumers' knowledge or consent.

"Manchester City Nissan systematically ripped-off Connecticut customers through needless, unauthorized junk fees" said Connecticut Attorney General William Tong. "We sued in coordination with the Federal Trade Commission, and today's settlement will now send millions of dollars back to customers. Car costs are through the roof right now, and Connecticut families deserve honest and fair prices."

Under the proposed order, defendants must pay $4 million to be used for consumer redress and refrain from misrepresentations, including whether vehicles are certified or include a limited manufacturer warranty. To foster price transparency, the agreement also requires the defendants to clearly and conspicuously disclose as the most prominently displayed item the maximum total price a consumer must pay for a vehicle, excluding only required government charges. The settlement also requires defendants to secure express, informed consent from consumers for all charges.

The Commission vote to approve the stipulated final order was 2-0. It was filed in the U.S. District Court for the District of Connecticut.

NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.

The lead attorney on this matter is Sam Jacobson in the FTC's Bureau of Consumer Protection.