Business & Tech

Former Owners Of Car Dealership On Manchester-Vernon Line to pay $4 Million In Penalties

What was once the Manchester City Nissan dealership is to pay $4 million in a case involving accusations of junk fees, deceptive practices.

Owners of the former Manchester Nissan dealership are to pay $4 million in a case involving accusations of junk fees, deceptive practices. It now has a new sign under the Bertera flag.
Owners of the former Manchester Nissan dealership are to pay $4 million in a case involving accusations of junk fees, deceptive practices. It now has a new sign under the Bertera flag. (Chris Dehnel/Patch )

MANCHESTER, CT — What was once Manchester City Nissan and its owners and managers have agreed to pay $4 million to resolve allegations that the dealership charged customers unauthorized fees and engaged in other deceptive practices, Attorney General William Tong and the Federal Trade Commission announced Wednesday.

The settlement stems from a January 2024 lawsuit filed by Connecticut and the FTC against Chase Nissan LLC, which operated as Manchester City Nissan, along with the dealership's owners and managers.

Bertera Auto Group acquired Manchester City Nissan on Nov. 1, 2024 changing its name to Bertera Nissan of Manchester. The case involves the previous ownership, which state and federal officials accused of frequently charging customers with unlawful or unauthorized fees.

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In some cases, customers were told they had to pay to "certify" used vehicles that the dealership had already advertised as certified pre-owned, according to the allegations. Officials also alleged that charges for products such as total loss protection were sometimes added to financing agreements without consumers' knowledge or consent.

"Manchester City Nissan systematically ripped-off Connecticut customers through needless, unauthorized junk fees," Tong said in a statement. "We sued in coordination with the Federal Trade Commission, and today’s settlement will now send millions of dollars back to customers."

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Under the stipulated final order, the defendants will pay $4 million for consumer redress and must stop making misrepresentations about whether vehicles are certified or covered by a limited manufacturer warranty, officials said.

The agreement also imposes new price transparency requirements. The dealership must prominently disclose the maximum total price a consumer must pay for a vehicle, excluding only required government charges.

The defendants also must obtain consumers' express and informed consent before imposing charges.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the settlement advances the agency's efforts to increase price transparency in the auto industry.

"Price transparency is essential for protecting consumers from deception and for preserving the integrity of competitive markets," Mufarrige said.

The FTC's vote to approve the stipulated final order was 2-0. The order was filed in U.S. District Court for the District of Connecticut.

Assistant Attorneys General Michael Nunes and Allison Frisbee and Deputy Associate Attorney General Michael Wertheimer, chief of the Consumer Protection Section, assisted Tong's office in the case.

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