The Federal Trade Commission and the State of Connecticut entered into a $4 million settlement with Manchester City Nissan, resolving allegations that the Connecticut auto dealer falsely advertised the prices of its cars.
In announcing the settlement, Christopher Mufarrige, the Director of the FTC's Bureau of Consumer Protection, said, “Today's settlement with Manchester City Nissan marks another critical step in the Commission's goal of advancing price transparency in the marketplace.”
In their lawsuit, the FTC and the State of Connecticut alleged that the dealer advertised prices for certified pre-owned cars, but when consumers came to buy the cars, the dealer charged more than the advertised price. They alleged that the dealer charged consumers additional fees to certify the cars, as well as for add-ons that they didn't authorize and for fees described as government charges, but that were higher than the actual government charges.
This enforcement action is yet another example of the attention being paid to junk fees – and the need for all-in pricing – at both a federal and state level. As Connecticut Attorney General William Tong said, “Manchester City Nissan systematically ripped-off Connecticut customers through needless, unauthorized junk fees."
