FTC and Connecticut take action against Manchester City Nissan auto dealership for illegally charging car buyers

The car shopping process can be challenging — and expensive. Deceptive and unfair practices can make the shopping process even more confusing and costly. That’s why the FTC recently passed the CARS Rule. And it’s why the FTC and State of Connecticut just sued Manchester City Nissan (MCN), its owners, and some key employees.

The agencies say MCN charged buyers junk fees — hidden and bogus fees that can harm consumers and undercut honest businesses. Car buyers paid thousands of dollars for certification fees, add-on products, and government fees that buyers had already said they didn’t want to pay for, didn’t know about, or that MCN tricked them into buying. The lawsuit claims MCN routinely tacked on certification fees that ranged anywhere from hundreds to thousands of dollars beyond the price of the car — even though manufacturer Nissan’s rules say the dealer must not charge such a fee. Sometimes MCN didn’t complete the certification process for the supposedly “certified” vehicle, meaning buyers paid twice for a certification they didn’t actually get. The lawsuit also claims that MCN charged buyers for add-on products, like GAP agreements or service contracts — that buyers weren’t aware of or didn’t authorize — and that the dealership inflated state registration fees on buyer’s contracts.

The FTC’s CARS Rule requires accurate information and transparency and fights two common types of illegal tactics people face when buying a car: bait-and-switch tactics and junk fees. That means a dealer must tell you the all-in price for the vehicle, excluding only required government charges. And a dealer can’t charge you for products or services that won’t benefit you, like a warranty that’s duplicative of a manufacturer’s warranty.

Thinking about buying a car? Read this post to learn more about your rights under the new rule. And if you believe a dealership charged hidden fees or used deceptive practices, please tell us at ReportFraud.ftc.gov.

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