The FTC and Maryland authorities claim that three Lindsay dealerships tricked customers through price gouging and deceptive practices
- The FTC and Maryland accused the Lindsay dealer group of deceptive pricing practices.
- Nearly 90% of buyers allegedly paid $2,000 more than advertised between 2020 and 2023.
- Regulators seek $10,000 penalties per violation under Maryland’s Consumer Protection Act.
Car dealerships don’t exactly have a squeaky-clean image to begin with, and stories like this one aren’t doing the industry any favors. According to the Federal Trade Commission (FTC) and the state of Maryland, a local dealer network raked in millions thanks to deceptive practices. That dealer group is the Lindsay Auto Group of Washington, DC and it’s now facing a lawsuit.
The complaint, filed jointly by the FTC and Maryland authorities, targets the Lindsay Automotive Group, comprising Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton, Lindsay Chrysler-Dodge-Jeep-Ram, and Lindsay Management Company, LLC, as well as three individuals, including company president Michael Lindsay.
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The allegations claim violations of the FTC Act and Maryland’s Consumer Protection Act, accusing Lindsay of consistently misleading customers about pricing. If the lawsuit succeeds, the dealership group could be on the hook to reimburse customers for these shady practices.
Allegations of Deceptive Practices
Among the complaints, the most damning is that Lindsay allegedly didn’t abide by its own advertised price very often. It claims that the dealer would have a deceptive price online and would tell customers who called in that the price was correct. Once in the building, the dealer network would then reportedly add on junk fees, tell the customer that they had to finance the car in-house, or that they didn’t qualify for the advertised price.
“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 (President of the company) told (COO John) Smallwood and others, ‘we never deliver the vehicle anywhere near the stated price’,” says the FTC.
Impact on Customers
Evidently, From 2020 to 2023, nearly 90% of customers who purchased vehicles from Lindsay Auto Group reportedly paid more than the advertised price. On average, buyers were charged an additional $2,000, often due to unexpected add-ons or fees,
“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 Attorney General Anthony G. Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”
Some of that cost came in the form of add-ons that customers claim they didn’t know about, didn’t want, or were told were required. The filing says that the dealer group could end up having to pay $10,000 per violation of the Consumer Protection Act. While that remains to be seen, hitting a greedy and deceptive dealership in the pocketbook sounds like the only way to spark change.