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FTC and Connecticut Secure $4 Million Settlement with Manchester City Nissan Over Deceptive Fees

Chase Nissan LLCAugust 19, 2026Federal Trade Commission

Penalty Amount

$4,000,000

Summary

The FTC and Connecticut secured a $4 million settlement with Chase Nissan LLC (doing business as Manchester City Nissan) over allegations the dealership charged consumers unauthorized fees, including double-charging for 'certified pre-owned' vehicles and inserting charges like total loss protection into financing agreements without consent. The settlement requires $4 million in consumer redress, prohibits misrepresentations about vehicle certification and warranties, mandates prominent disclosure of the maximum total vehicle price, and requires express informed consent for all charges.

Remedy

Defendants must pay $4 million for consumer redress; are prohibited from misrepresenting whether vehicles are certified or include a limited manufacturer warranty; must clearly and conspicuously disclose the maximum total vehicle price as the most prominently displayed item (excluding only required government charges); and must secure express, informed consent from consumers for all charges. The stipulated final order was filed in the U.S. District Court for the District of Connecticut.

Monetary PenaltyConsumer RefundsInjunctionCompliance Program

Contract Impact

In-house legal teams should review dealer and customer-facing sales agreements for fee disclosure and itemization clauses, ensuring all add-on charges (e.g., total loss protection, certification fees) require separate written authorization. Vendor agreements with F&I product providers should be audited for compliance with express consent and opt-in requirements. Dealer franchise agreements and sales scripts should be updated to reflect the new maximum-price disclosure obligation and prohibitions on misrepresenting certification status. Financing agreements and retail installment sales contracts should include clear consent checkboxes and audit trails. In-house counsel should also update compliance training and monitoring provisions in dealer agreements to require documented consumer consent for every charge, and add indemnification clauses protecting against unauthorized-fee claims.

Contract Search Terms

certified pre-ownedjunk feesconsumer authorizationfinancing agreementtotal loss protectionprice transparencyexpress informed consentdealer add-onswarranty disclosure

Laws Cited

FTC Act Section 5Connecticut Unfair Trade Practices Act
15 U.S.C. § 45

Violation Types

Entity Details

Entity

Chase Nissan LLC

Industry

Automotive

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Chase Nissan LLC, which did business as Manchester City Nissan"
Fine Amount
"secured a $4 million settlement"
Violation Types
"collecting other fees without consumer authorization"
Violation Types
"double-charging for “certified pre-owned” vehicles"
Remedy Types
"defendants must pay $4 million to be used for consumer redress"
Remedy Types
"requires the defendants to clearly and conspicuously disclose as the most prominently displayed item the maximum total price a consumer must pay for a vehicle"

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