On the Dash:
- The FTC and Connecticut secured a $4 million settlement with Manchester City Nissan over alleged unauthorized fees and CPO-related charges.
- The dealership allegedly charged customers to certify vehicles already advertised as certified and added products such as total loss protection without consent.
- The settlement requires clearer upfront pricing and informed consumer consent for all vehicle charges.
On Wednesday, the Federal Trade Commission (FTC) and the state of Connecticut secured a $4 million settlement with Chase Nissan LLC, doing business as Manchester City Nissan, over allegations that the dealership and its owners and managers charged customers unauthorized fees and misrepresented certified pre-owned vehicles. The FTC and Connecticut filed the underlying lawsuit initially in January 2024.
The FTC and Connecticut alleged the dealership charged customers thousands of dollars in unlawful fees. In some cases, the dealership billed customers to “certify” used vehicles it had already advertised as certified pre-owned. According to the complaint, the dealership also added charges for total loss protection and other products to financing agreements without customers’ knowledge or consent.
Under the settlement, the dealership must pay $4 million toward consumer redress, with $2 million due within seven days and the remaining $2 million due within 10 months. The proposed order also requires the dealership to clearly disclose the maximum total vehicle price, excluding only required government charges, and to obtain express, informed consent from consumers for all charges.
Additionally, the settlement bars the dealership from misrepresenting whether vehicles are certified or include a limited manufacturer warranty. According to Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, the case builds on the agency’s broader push for price transparency in the auto marketplace. “Price transparency is essential for protecting consumers from deception and for preserving the integrity of competitive markets,” Mufarrige said in the company’s release. Connecticut Attorney General William Tong echoed that message, saying Manchester City Nissan “systematically ripped off Connecticut customers through needless, unauthorized junk fees.”
However, it’s important to note that the stipulated final order takes effect once a federal judge approves and signs it.
