Connecticut Nissan Dealer to Pay $4 Million Over Alleged Hidden Fees and Unauthorized Charges

August 20, 2026

Manchester City Nissan settlement — Manchester City Nissan in Manchester, Connecticut, is subject to a proposed $4 million settlement resolving FTC and state allegations involving deceptive pricing, unauthorized charges and certified pre-owned vehicle fees. Helen89/Shutterstock

The Federal Trade Commission and the state of Connecticut have reached a $4 million settlement with a Connecticut auto dealership and its owners and managers over allegations of deceptive fees and unauthorized charges, according to an official announcement from the FTC.

The settlement resolves a lawsuit filed in January 2024 by the FTC and Connecticut against Chase Nissan LLC, which operated as Manchester City Nissan in Manchester, Connecticut. The agencies alleged the dealership double-charged customers for certified pre-owned vehicles and collected other fees without consumer authorization.

Customers Allegedly Paid Thousands in Unauthorized Fees

According to the FTC announcement, the dealership’s own data showed customers were frequently charged thousands of dollars in unlawful fees. In some cases, consumers were told they had to pay to “certify” used vehicles that the dealership had already advertised as “certified pre-owned.” Other charges, such as total loss protection, were allegedly inserted into financing agreements without customers’ knowledge or consent.

The $4 Million Is Intended for Consumer Refunds

Under the proposed settlement order, the $4 million will be used for consumer redress — meaning affected customers may receive refunds. The defendants are also required to stop making misrepresentations, including about whether vehicles are certified or include a limited manufacturer warranty.

The agreement imposes new price transparency requirements on the dealership. Defendants must clearly and conspicuously display the maximum total price a consumer must pay for a vehicle as the most prominently shown item, excluding only required government charges. The settlement also requires defendants to obtain express, informed consent from consumers before adding any charges.

For car shoppers, that requirement addresses a familiar problem: a vehicle can appear to carry one price in an advertisement or online listing, only for additional dealer charges to emerge later in the transaction. Under the proposed order, the dealership must prominently disclose the maximum total price a consumer must pay, excluding required government charges, and obtain express, informed consent before adding other charges. Consumers should still review every line of a purchase or financing agreement before signing and compare the final price with the amount originally advertised.

What Manchester City Nissan Customers Should Know

The FTC Commission approved the stipulated final order by a 2-0 vote. The order was filed in the U.S. District Court for the District of Connecticut. Stipulated final orders carry the force of law once approved and signed by the district court judge.

The settlement is part of what the FTC described as a broader effort to improve price transparency in the auto marketplace. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated in the announcement that price transparency is essential for protecting consumers from deception and preserving competitive markets.

For consumers who purchased a vehicle from Manchester City Nissan and believe they may have been affected, the FTC encourages verifying individual circumstances directly with the agency. Readers can report fraud or bad business practices at ReportFraud.ftc.gov or find consumer information at consumer.ftc.gov.