This will send shivers up the spines of Sales Managers at dealerships all over America. The Federal Trade Commission and an Attorney General have charged two dealership Sales Managers for deceptive practices. This is the first case I can recall where Sales Managers were charged. Usually, it is the Owner of the dealership, and in rare cases the General Manager. As you will learn below, the dealership was also charged, and rightfully so. I could make the case for these Sales Managers were carrying out orders from higher up. I am curious, too, why not the Finance Managers, who actually had the consumers sign paperwork?
The two sales managers from a Connecticut Nissan dealership have agreed to settle allegations from the Federal Trade Commission and the state that the store illegally padded car prices with deceptive add-ons. The agreements, announced Sept. 5, involve sales managers Matthew Chmielinski and Fred Mojica of Manchester City Nissan, also known as Chase Nissan. The settlements resolve claims first raised in a joint complaint filed in January 2024 by the FTC and Connecticut Attorney General William Tong. Regulators accused the dealership and its managers of routinely slipping unauthorized fees and products into vehicle sales contracts, often after consumers had already negotiated purchase prices.
According to the FTC and state complaint, Manchester City Nissan unlawfully charged thousands of dollars for add-ons such as service contracts, Total Loss Protection and Guaranteed Asset Protection. Investigators said the dealership tacked on these products in as many as 90 percent of sales, often without customer consent. The complaint also alleged that the dealership added improper certification charges to vehicles advertised as certified pre-owned, in violation of Nissan’s own policies, and inflated government taxes and registration fees while pocketing the difference.
The regulators cited several consumer examples. In one case, a buyer responding to an ad for a certified pre-owned vehicle at $15,700 was told at signing that a $5,295.65 “inspection fee” would be required, even though the car had already been inspected. In another, a consumer who negotiated a $20,500 price for a Rogue Sport left with more than $7,000 in additional charges for add-ons. The complaint also noted an instance in which the dealership charged $345 for registration and title fees, even though the actual state cost was just $208.20.
The FTC charged that these practices violated Section 5(a) of the Federal Trade Commission Act, which prohibits unfair or deceptive acts or practices. Connecticut cited its own Unfair Trade Practices Act. “We allege that Manchester City Nissan repeatedly deceived consumers by charging junk fees and inflating state fees, all in violation of the law,” Tong said when the complaint was filed.
The stipulated court orders filed this month impose permanent injunctions against Chmielinski and Mojica, as well as monetary judgments and civil penalty provisions. While exact figures tied to the managers were not disclosed in public summaries, the orders are enforceable in federal court and bar the pair from future violations of federal or state consumer protection laws. The agreements do not constitute an admission of wrongdoing but resolve the allegations without further litigation.
The settlement marks another step in a broader federal crackdown on so-called junk fees in the auto industry. The FTC has made dealership sales practices a target in recent years, citing consumer complaints about add-on products, hidden charges and misleading advertising. “These kinds of illegal fees drive up prices for car buyers and undermine trust in the marketplace,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said when the original charges were announced in January.
Manchester City Nissan itself remains a defendant in the ongoing case. The dealership has not issued a public statement in response to the latest developments. One has to wonder if the dealership paid the fines for these two. I would bet a lot of money they did.
Photo Credit: Scott Maxwell LuMaxArt/Shutterstock.com.