The Federal Trade Commission and the Maryland Attorney General announced a multi-million-dollar settlement with Lindsay Automotive Group last week, stemming from the 2024 complaint against the dealer.
The settlement resolves the case alleging that the group, which operates multiple franchise dealerships in the Washington, D.C., area, deceived consumers by falsely advertising low prices and including unwanted add-ons, leading buyers to pay thousands of dollars more for their vehicles. Authorities stated that more than $75 million charged to consumers between April 1, 2020, and December 31, 2025, may be returned, and the group will pay a $3.1 million civil penalty.
“Lindsay Auto misled consumers by advertising false low car prices and then adding mandatory fees and other charges during the car buying process,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection in a press release. “The Trump-Vance FTC is focused on ensuring that auto dealers’ competitors are transparently competing on price.”
The December 2024 complaint named three Lindsay Automotive Group dealerships, Lindsay Chevrolet in Woodbridge, Virginia; Lindsay Chrysler, Dodge, Jeep, Ram in Manassas, Virginia; and Lindsay Ford in Wheaton, Maryland. The complaint also named part owner and president Michael Lindsay, Chief Operating Officer John Smallwood and former general manager Paul Symth.
The FTC claimed Lindsay Automotive advertised deceptive prices and promoted prices not available to most customers. The agency claimed that a sample of Lindsay’s transactions showed 88 percent of customers paid more than $2,000 above the advertised price between 2020 and 2023.
The complaint also stated Lindsay Automotive made deceptive claims that vehicles must be financed through the dealership and that consumers were directed to loans with higher rates. Customers also alleged being charged for add-ons they did not consent to or being told they were mandatory.
“We filed this lawsuit because Lindsay dealerships misled Maryland car buyers into overpaying for their vehicles. This settlement puts money back in Marylanders’ pockets and puts a stop to these predatory practices,” Maryland Attorney General Anthony G. Brown said in a press release. “Our office is committed to ensuring that every Maryland consumer who does business with a car dealership is treated fairly.”
The settlement follows the FTC recently sending warning letters to 97 dealers for possible misleading advertising and sales practices. FTC Chairman Andrew Ferguson and Commissioner Mark Meador, after the announcement of the settlement with the Lindsay Group, restated the agency’s commitment to price transparency.
“Without it, consumers are hit where it truly hurts: their wallets. And the money consumers lose due to being kept in the dark or deceived about prices is less money to make other ends meet,” Ferguson and Meador stated.
A senior FTC official will be joining NIADA Director of Government Relations and Compliance Patrick O’Brien to address the letters and compliance under Section 5 of the Federal Trade Commission Act at 2:30 p.m. April 21. Dealers are urged to register here.
Along with addressing the warning letters, the webinar will include an overview of the FTC’s Safeguards Rule, under which automobile dealers must develop and implement a plan to protect customer information from breaches and unauthorized access.
