The Federal Trade Commission and the office of the Maryland Attorney General filed charges against a Maryland based auto group with systematically deceiving and overcharging car-buying consumers for years, costing them millions of dollars in junk fees and unwanted add-on products.
The complaint against the Lindsay Automotive Group alleges it advertised prices it refused to honor and falsely claimed consumers needed to obtain financing through Lindsay. The complaint charges that Lindsay Chevrolet of Woodbridge; Lindsay Ford of Wheaton; Lindsay Chrysler-Dodge-Jeep-Ram; Lindsay Management Company, LLC; and individual defendants part-owner and president Michael Lindsay, COO John Smallwood, and he dealerships’ former general manager Paul Smyth violated the FTC Act as well as Maryland’s Consumer Protection Act.
“Auto dealers who trick consumers with bait-and-switch advertising, financing sleights of hand, and unwanted add-ons should expect to hear from the FTC,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection in a press statement with the complaint filed Dec. 27, 2024. “The FTC and its state partners will continue working to combat this illegal conduct.”
Allegations by FTC
According to the complaint, Lindsay regularly advertises deceptive prices on its website and in its advertising, promoting vehicles for sale at a price that is not actually available to the vast majority of consumers. Lindsay employees continue the deception when consumers call, claiming the advertised price is real.
Only when consumers get to the dealership do they learn that the price is hundreds or even thousands more than advertised because they do not qualify for a raft of rebate programs, or because they must pay thousands of dollars in additional fees.
One dealership manager cited in the complaint told a consumer that the price on the website “was not realistic” and that “no one would qualify for it because it was nearly impossible to qualify for all the rebates to get to that price.” In fact, Michael Lindsay told Smallwood and others, “we never deliver the vehicle anywhere near the stated price.” In other cases, dealership employees simply told consumers directly that the advertised price wasn’t true, according to the complaint.
Deceptive Financing Claims
Additionally, the complaint charges that Lindsay’s unlawful conduct didn’t stop at the vehicle’s purchase price as they face further challenges when Lindsay deceptively claims that they must finance their car through the dealership. Lindsay receives what it calls “kickbacks” from financing companies when consumers finance a car through the dealership, according to the complaint. Consumers who arrive at Lindsay dealerships looking to pay cash or with pre-approved financing from another financial institution are regularly told that the advertised price won’t be honored.
“Buying a car is a significant financial investment. Marylanders deserve to know upfront how much they will actually pay for a vehicle and should not be surprised by hidden charges that they did not budget for,” said Maryland Attorney General Anthony G. Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”
Lindsay Automotive Statement
The complaint asks the court to stop Lindsay’s unlawful actions and provide redress to the consumers harmed by those actions.
In a statement provided to WTOP, a spokesperson from the Lindsay Automotive Group said they “strongly refute any suggestion of improper conduct and will work to resolve this matter through the legal process.”
“As a responsible company, we are committed to fully complying with the law and providing excellent customer service,” according to the auto group. “You can rest assured that our focus remains where it has always been on providing the absolute best option for our customers and on serving the community in a manner that would make all of our employees, customers, and partners proud.”
