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

The Federal Trade Commission and Connecticut Attorney General William Tong announced a $4 million settlement with Manchester City Nissan, resolving claims that the dealership double-charged customers for 'certified pre-owned' vehicles and added unauthorized fees such as total loss protection without consent. The allegations stem from a January 2024 lawsuit filed jointly by the FTC and Connecticut, which cited dealership data showing thousands of dollars in unlawful charges imposed on consumers. The settlement requires the defendants to pay $4 million for consumer redress and prohibits misrepresentations about vehicle certification or warranties. The agreement also mandates clear disclosure of the maximum total vehicle price and requires express consumer consent for all additional charges.

FTC Bureau of Consumer Protection Director Christopher Mufarrige emphasized the settlement’s role in advancing price transparency in the auto market, stating that open competition benefits consumers through better prices, quality, and trust. The FTC alleged that Manchester City Nissan’s practices undermined these principles by deceiving customers with hidden or unauthorized fees. The proposed order, approved unanimously by the FTC, reflects ongoing efforts to enforce fair competition and protect consumers from deceptive business practices in the automotive industry.

Connecticut Attorney General William Tong criticized the dealership’s conduct, describing it as a systematic exploitation of customers through unnecessary and unauthorized fees. The lawsuit, filed in coordination with the FTC, sought to hold the dealership accountable for practices that inflated costs during a period of high vehicle prices. The $4 million settlement will be used to provide refunds to affected consumers, addressing financial harm caused by the dealership’s alleged misconduct.

Under the proposed order, Manchester City Nissan and its owners and managers must comply with strict requirements to prevent future deceptive practices. The settlement mandates prominent display of the total vehicle price, excluding only required government charges, and ensures consumers provide informed consent for all additional fees. The U.S. District Court for the District of Connecticut must approve the stipulated final order, which carries the force of law once signed by a judge.