WASHINGTON, D.C. – The Federal Trade Commission (FTC), in conjunction with the Maryland Attorney General, have filed charges against Lindsay Automotive Group, which is alleged to have overcharged scores of customers over the course of several years – via an array of deceptive practices, including false advertising, unwanted add-ones, and inflated costs – to the tune of millions of dollars.
According to an investigation conducted by the FTC, a whopping 88 percent of consumers who had purchased vehicles from Lindsay from 2020 to 2023 ended up paying over and above the originally advertised price; the average markup, according to the federal agency, was more than $2,000.
Lindsay – which is comprised of Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton, Lindsay Chrysler-Dodge-Jeep-Ram, and Lindsay Management Company, LLC – is purported to have advertised prices that they never had any intention of honoring to customers, in addition to claiming that it was required to finance purchases solely through their dealerships.
As per the complaint, Lindsay Automotive is accused of utilizing bait-and-switch practices, such as advertising one price for a given vehicle, only for customers to find out when they reached the dealership that the real price was actually much higher because of “mandatory fees” and “rebates” that they were not eligible for.
According to the FTC, a Lindsay manager was quoted as saying, “We never deliver the vehicle anywhere near the stated price.”
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. “The FTC and its state partners will continue working to combat this illegal conduct.”
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 AG Anthony G. Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”
Those named in the case include the three aforementioned Lindsay dealerships and their management company, in addition to company executives Michael Lindsay and John Smallwood, and former general manager Paul Smyth.
Christopher Boyle is an investigative journalist, videographer, reporter and writer for SEARCHEN NETWORKS® as well as other independent news and media organizations in the United States. Christopher works on a wide variety of topics and fields, has been featured in print and online in a variety of publications, from local to national, and helps keep a keen-eye on what’s happening in the automotive world for Auto Buyers Market.