Connecticut and FTC announce $4 million settlement with Manchester City Nissan over junk fee allegations
Attorney General William Tong and the Federal Trade Commission said the proposed order resolves a 2024 lawsuit accusing the dealership of double-charging for "certified pre-owned" vehicles and adding unauthorized charges to financing agreements.
Connecticut Attorney General William Tong and the Federal Trade Commission announced a $4 million settlement with Manchester City Nissan and its owners and managers on Aug. 19, resolving allegations that the dealership charged customers unauthorized fees, according to the attorney general's office.
Connecticut and the FTC sued Chase Nissan LLC, which did business as Manchester City Nissan, along with its owners and managers in January 2024 over what the two agencies described as unlawful conduct at the dealership, the release said.
The agencies alleged that the dealership's own data showed customers were frequently charged thousands of dollars in unlawful fees. Some consumers were told they had to pay to "certify" used cars that the dealership had advertised as already being "certified pre-owned," according to the release, and other charges, such as total loss protection, were inserted into financing agreements without consumers' knowledge or consent.
Under the proposed order, the defendants must pay $4 million for consumer redress and refrain from misrepresentations, including about whether vehicles are certified or include a limited manufacturer warranty, the attorney general's office said. The agreement also requires the defendants to display the maximum total price a consumer must pay for a vehicle, excluding required government charges, as the most prominent item, and to obtain express, informed consent for all charges.
The FTC vote to approve the stipulated final order was 2-0, and the order was filed in U.S. District Court for the District of Connecticut, according to the release. The release does not indicate that the defendants admitted wrongdoing, and the allegations have not been proven in court.
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