The Federal Trade Commission (FTC) and the Maryland Attorney General have accused Lindsay Automotive Group of deceiving car buyers, allegedly costing them millions in unnecessary fees and add-ons. The agencies claim that Lindsay falsely advertised low prices and pressured consumers into financing through their dealerships.
The complaint involves three Lindsay dealerships, their management company, part-owner and president Michael Lindsay, COO John Smallwood, and former general manager Paul Smyth. They are accused of engaging in "pervasive unlawful conduct."
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, stated: “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.” Maryland Attorney General Anthony G. Brown emphasized the importance of transparency for car buyers: “Marylanders deserve to know upfront how much they will actually pay for a vehicle.”
According to the complaint, Lindsay's advertisements often promoted prices unavailable to most consumers. Many customers only discovered additional costs upon reaching the dealership due to unqualified rebates or mandatory fees. A dealership manager reportedly admitted that no one could qualify for all rebates needed for the advertised price.
From 2020 to 2023, 88% of customers paid over $2,000 more than advertised prices on average. The complaint also alleges that Lindsay required consumers to finance through their dealerships by offering higher interest rates compared to other lenders.
Furthermore, it is claimed that consumers were charged for unwanted add-on products or were falsely informed these were mandatory purchases. The complaint details violations by several entities including Lindsay Chevrolet of Woodbridge; Lindsay Ford of Wheaton; Lindsay Chrysler-Dodge-Jeep-Ram; and others.
The case has been filed in the U.S. District Court for the Eastern District of Virginia following a unanimous Commission vote authorizing legal action. Mary Weaver and Evan Zullow are handling this matter from the FTC’s Bureau of Consumer Protection.
The FTC emphasizes its role in promoting competition while protecting consumer rights against deceptive practices.
