Dealership Group May Have to Refund Car Buyers $75 Million Due to Alleged Predatory Pricing

Key Points:

• The Federal Trade Commission (FTC) and Maryland Attorney General have taken action against Lindsay Automotive Group for misleading customers into paying thousands more than advertised for vehicles and add-ons, resulting in a $3.1 million civil penalty and over $75 million in customer refunds.
• Lindsay Auto Group, operating under Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton, and Lindsay Chrysler-Dodge-Jeep-Ram, allegedly advertised falsely low prices and charged for add-ons like tire protection and GAP insurance without customer consent.
• The complaint, filed in December 2024, names the dealerships, their management company, and executives including part-owner Michael Lindsay, COO John Smallwood, and former general manager Paul Smyth as defendants.
• Authorities claim the dealerships misled customers by denying advertised rebates, requiring dealership financing even when buyers had prearranged loans, including military personnel, violating consumer protection laws.
• The court order mandates Lindsay Auto to change business practices by prohibiting false advertising, requiring clear disclosure of total vehicle costs, and obtaining consumer consent for additional fees; the Maryland Attorney General’s Office will notify eligible customers about refunds.