The Federal Trade Commission (FTC) and the Maryland Attorney General’s Office have filed a joint lawsuit against Lindsay Automotive Group, accusing the company of years of unlawful conduct that cost consumers millions of dollars in hidden fees, inflated prices, and unwanted add-on products. The complaint targets the company’s three Maryland-based dealerships and senior executives, including part-owner and president Michael Lindsay, Chief Operating Officer John Smallwood, and former general manager Paul Smyth.
The agencies allege that Lindsay Automotive systematically misled consumers through false advertising, deceptive pricing, and steering buyers into expensive, unnecessary financing deals.
Deceptive Pricing Practices
According to the complaint, Lindsay dealerships advertised vehicles at prices that were not available to most consumers. Potential buyers were often lured in by low prices posted on the company’s website or in ads, only to be hit with hidden charges once they arrived at the dealership. These additional fees—sometimes amounting to thousands of dollars—were not disclosed upfront and were claimed to be “mandatory” or tied to rebate programs that most customers could not qualify for.
In some cases, dealership staff allegedly told customers the advertised price was unrealistic, with one manager claiming, “no one would qualify for it because it was nearly impossible to qualify for all the rebates to get to that price.” Michael Lindsay, the company’s president, is quoted in the complaint as stating that, “we never deliver the vehicle anywhere near the stated price.”
Lindsay’s advertisements, often featured on its website and third-party sites, showcased enticingly low prices for cars, such as a 2024 Chevrolet Silverado 1500 listed at $42,990. Many consumers, believing they would pay the advertised price, traveled significant distances or spent considerable time to visit the dealerships. However, once at the dealership, they were informed that the advertised price was unavailable, with additional fees or conditions applied—often adding thousands of dollars to the final cost. In many instances, Lindsay claimed consumers did not qualify for various rebates or incentives, which were never clearly disclosed in the ads. Additionally, consumers were required to pay mandatory fees, such as a “Blue Oval” charge or a “Blazer Package” fee, which were not mentioned upfront.
From 2020 to 2023, the complaint reveals that 88% of consumers who purchased vehicles from Lindsay dealerships paid, on average, over $2,000 more than the advertised price.
Forced Financing and Higher Loan Costs
The lawsuit also accuses Lindsay of coercing customers into financing their vehicles through the dealership, even if they had their own financing arranged elsewhere. Lindsay dealerships allegedly told consumers that they could not obtain the advertised price unless they financed through Lindsay, a practice the FTC and the Maryland Attorney General’s office say violated consumer protection laws.
In many instances, customers were steered into financing deals with higher interest rates than they could have obtained from other lenders. According to the complaint, more than a third of Lindsay’s customers were told that financing through the dealership was mandatory to secure the advertised price.
In addition to pricing and financing issues, the complaint alleges that Lindsay Automotive systematically charged consumers for add-on products—such as extended warranties, tire protection plans, and gap insurance—that they did not consent to or were misled into believing were required. A survey cited in the lawsuit found that 68% of Lindsay’s customers were either falsely told these add-ons were mandatory or were charged for services they did not agree to purchase.
These deceptive charges often amounted to hundreds, if not thousands, of dollars, further inflating the final cost of the vehicle well beyond what was initially advertised.
Agency Reaction and Legal Actions
The complaint, which was filed in federal court, seeks to put an end to Lindsay’s deceptive practices and demand restitution for consumers who were harmed by the dealership’s actions. Both the FTC and Maryland Attorney General Anthony G. Brown have emphasized their commitment to holding auto dealers accountable for deceptive conduct that harms consumers.
“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,” Attorney General Brown said in a statement. “Our Office will not let car dealerships profit from unfair and deceptive practices.”
FTC Bureau of Consumer Protection Director Samuel Levine also weighed in, warning other dealerships that they could face similar legal action if they engage in similar illegal conduct. “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,” Levine said. “The FTC and its state partners will continue working to combat this illegal conduct.”
The Maryland Division has also filed a parallel case under the state’s Consumer Protection Act, which prohibits unfair or deceptive trade practices in connection with the sale of consumer goods. The defendants’ actions included:
- Failure to Disclose Fees: They advertised vehicle prices online but failed to disclose additional mandatory charges, such as processing fees, taxes, and title fees, which misled consumers about the true cost of the vehicle.
- Deceptive Practices Regarding Add-Ons: Consumers were misled into believing that certain add-ons were required when they were not, resulting in financial harm.
- Failure to Obtain Consent for Charges: The defendants are accused of charging consumers for products or services they did not explicitly agree to, violating Maryland law that mandates informed consent for all charges.
What’s Next for Lindsay Automotive Group?
The lawsuit filed by the FTC and the Maryland Attorney General’s office asks the court to stop Lindsay Automotive’s unlawful actions and provide financial restitution to the consumers harmed by the dealership’s deceptive practices.
The actions of the defendants have caused significant financial harm to consumers, who have been misled into paying more than expected for vehicles and related services. The lack of transparency regarding additional fees, unauthorized charges, and financing options has left many consumers with burdensome financial obligations they did not anticipate.
As the case unfolds, the automotive industry and consumer rights advocates will likely be watching closely, as this case could set a precedent for how auto dealerships are held accountable for deceptive advertising and sales tactics. Meanwhile, Lindsay Automotive Group has not publicly commented on the legal proceedings.
Consumers who feel they have been affected by Lindsay’s practices are encouraged to file complaints with the FTC or the Maryland Attorney General’s Office.
