A Manchester, Conn., auto dealer and its owners and managers have agreed to a proposed $4 million settlement with the Federal Trade Commission and the state of Connecticut over allegations involving unauthorized fees and misleading charges.
The FTC and Connecticut sued Chase Nissan LLC, doing business as Manchester City Nissan, in January 2024. According to the complaint, the dealership allegedly charged some customers to “certify” used vehicles that had already been advertised as certified pre-owned. The agencies also alleged charges, including total loss protection, were added to financing agreements without customers' knowledge or consent.
“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.”
Under the proposed order, the defendants must pay $4 million for consumer redress and are prohibited from making certain misrepresentations, including claims about whether a vehicle is certified or includes a limited manufacturer warranty.
The agreement also requires the defendants to prominently disclose the maximum total price a consumer must pay for a vehicle, excluding only required government charges, and obtain express, informed consent for all charges.
Connecticut Attorney General William Tong said the settlement would return millions of dollars to affected customers. “Car costs are through the roof right now, and Connecticut families deserve honest and fair prices,” he said.
