Protecting the Rights of Consumers
For Over 25 Years
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By
Edelman Combs Latturner & Goodwin LLC
FTC and Connecticut take action against Manchester City Nissan auto dealership for illegally charging car buyers
By
Carol Kando-Pineda
Counsel, Division of Consumer and Business Education
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.