Thankfully, the FTC is getting serious about deceptive practices at car dealerships. A Connecticut Nissan dealership has agreed to pay $4 million to settle allegations that customers were hit with unauthorized fees, including charges for certifying used vehicles that had already been advertised as certified pre-owned.
The Federal Trade Commission and Connecticut Attorney General William Tong announced the settlement Wednesday with Chase Nissan LLC, which did business as Manchester City Nissan, along with the dealership’s owners and managers. The money will be used for refunds to affected consumers. The proposed order was filed in U.S. District Court for the District of Connecticut and will become legally binding once approved and signed by the judge.
The case began in January 2024, when the FTC and Connecticut sued the dealership over what regulators alleged were deceptive pricing, unwanted add-ons and inflated or misleading government fees. According to the FTC, the dealership’s own records showed that customers were frequently charged thousands of dollars in fees regulators contend were unlawful.
One of the most striking allegations involved certified pre-owned vehicles. Regulators said Manchester City Nissan advertised numerous vehicles as “certified pre-owned,” a designation that generally means the vehicle has met the manufacturer’s inspection and reconditioning standards and includes additional warranty coverage. According to the 2024 complaint, Nissan’s program prohibited dealers from charging a separate certification fee beyond the vehicle’s price.
Yet regulators alleged some customers arrived to buy advertised certified vehicles only to be told they had to pay extra to have them certified. In one example cited by Connecticut officials, a shopper came in to buy a certified pre-owned vehicle advertised for $15,700 and allegedly was charged an additional $5,295.65 “inspection fee” even though the vehicle had already been inspected.
The complaint also alleged that customers were charged for add-on products they had not agreed to buy, including GAP coverage, service contracts, maintenance contracts and Total Loss Protection. Regulators said Total Loss Protection appeared in about 90% of the dealership’s sales. In another example, a customer negotiated a $20,500 price for a Nissan Rogue Sport but later discovered more than $7,000 in add-ons had been included in the amount financed, according to the complaint.
Government fees were another focus of the case. Regulators alleged the dealership sometimes represented dealer-imposed charges as government-required fees or inflated actual state charges and kept the difference. One consumer was allegedly told Connecticut registration and other state fees totaled $345 when the actual amount was $208.20.
Under the new settlement, the defendants must pay $4 million for consumer redress and are prohibited from misrepresenting whether vehicles are certified or include a limited manufacturer warranty. They also must obtain a customer’s express, informed consent for all charges.
The order places particular emphasis on advertised pricing. Manchester City Nissan must clearly and conspicuously display the maximum total price a consumer would have to pay for a vehicle, excluding only mandatory government charges, and that figure must be the most prominently displayed price.
FTC Bureau of Consumer Protection Director Christopher Mufarrige said the settlement advances the agency’s push for greater price transparency in auto retailing. Connecticut Attorney General Tong said the agreement will return millions of dollars to customers and argued that consumers facing today’s high vehicle costs should be able to rely on honest pricing.
For car buyers everywhere, the case is another reminder that the number that matters is not merely the advertised price or even the negotiated selling price. Before signing, review the buyer’s order and financing contract line by line, question every fee and add-on, and make sure you understand exactly what has been included in the amount financed.
A $20,500 car can become a very different deal when another $7,000 suddenly finds its way onto the paperwork. And this is yet another clear signal to crooked car dealers that there must be truth and transparency in pricing.