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FTC Sues Dealer Allegedly Adding "Junk Fees" and Bogus Add-Ons

The Federal Trade Commission (FTC) and the State of Connecticut have filed a joint complaint against Manchester City Nissan, a franchise dealership, alleging deceptive and unfair practices involving "certified" used cars, hidden fees, and unwanted add-ons. This action highlights the continued focus of regulatory agencies on potential consumer protection issues in the auto industry.

The complaint accuses Manchester City Nissan of:

  • Misrepresenting the condition of cars sold as "certified": The FTC and Connecticut allege that the dealership often failed to report certified car sales to Nissan, leaving buyers without the additional warranty promised in advertising.

  • Charging unauthorized "junk fees": The complaint claims the dealership routinely added hundreds or even thousands of dollars in unwanted charges, such as certification fees, add-on products, and government charges, without obtaining consumers' informed consent.

  • Including hidden fees in financing: The FTC and Connecticut allege that Manchester City Nissan sometimes included surprise charges in loan documents, adding to the final purchase price without prior disclosure.

In a statement, Andrew Smith, Director of the FTC's Bureau of Consumer Protection, said: "Buying a car should be an exciting experience, not one filled with deceptive practices and hidden fees. This joint action with Connecticut sends a strong message that the FTC will work to protect consumers from scams, whether they're buying new or used cars."
 
Manchester City Nissan has not yet publicly responded to the allegations. It's important to note that the complaint represents only the government's side of the story, and the dealership has the opportunity to defend itself in court.
 
TIADA encourages its members to stay informed about regulatory developments and review their sales practices to ensure compliance. We will continue to monitor this case and provide updates as they become available.

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