WASHINGTON, D.C. — The Federal Trade Commission (FTC) and Maryland Attorney General Anthony G. Brown have jointly filed a lawsuit against Lindsay Automotive Group, accusing the company of deceptive and overcharging practices that allegedly cost consumers millions of dollars. The charges, aimed at Lindsay Automotive Group’s dealerships and executives, allege deceptive advertising, financing schemes, and unauthorized add-on charges.
The complaint targets Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton, Lindsay Chrysler-Dodge-Jeep-Ram, Lindsay Management Company, and executives Michael Lindsay, John Smallwood, and Paul Smyth. According to the allegations, Lindsay systematically advertised vehicle prices it refused to honor, misleading customers by requiring financing through its dealerships and burdening them with add-on products they did not agree to purchase.
Investigators claim that Lindsay’s advertising presented vehicles at low prices to attract buyers, only for consumers to face higher costs upon arrival. Nearly 88% of car buyers from 2020 to 2023 paid an average of over $2,000 more than the advertised price. Additionally, customers often found they were required to finance their vehicles through Lindsay at higher interest rates, costing them thousands more over the life of their loans.
Further allegations charge Lindsay with systematically adding costs for unwanted products such as service plans and protection coverages. Surveys cited in the complaint reveal that 68% of consumers were charged for these unauthorized add-ons or falsely informed they were mandatory.
FTC Bureau of Consumer Protection Director Samuel Levine criticized Lindsay’s practices, labeling them as bait-and-switch tactics designed to exploit consumers. Maryland Attorney General Brown emphasized the need for fair and transparent pricing in car sales, especially given the financial investment required.
The complaint, filed in the U.S. District Court for the Eastern District of Virginia, seeks to halt Lindsay Automotive Group’s unlawful practices and secure financial redress for affected consumers. The outcome could set a precedent for auto sales and consumer rights enforcement.
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