A Virginia-based car dealership group has been accused of falsely advertising low prices and overcharging consumers for years, costing them millions of dollars.
On Friday, the Federal Trade Commission (FTC) and Maryland Attorney General filed charges against the Lindsay Automotive Group. According to its website, the Lindsay Automotive Group was established in 1963 and is based out of Alexandria, with locations throughout the region, including in Woodbridge, Dulles, Manassas, Warrenton, Springfield, Front Royal and Wheaton.
Mary Weaver, a staff attorney in the Bureau of Consumer Protection at the FTC, said the complaint alleged Lindsay “tricked consumers with bait and switch advertising, charged consumers for add-ons they did not want and deceived consumers about their financing options.”
The charges were filed against Lindsay Management Company, three Lindsay automotive dealerships — Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, L.L.C. — along with the company’s part-owner and president, Michael Lindsay, COO John Smallwood and former general manager Paul Smyth.
Weaver said, according to Lindsay employees, these dealerships “advertised ridiculous and impossible prices online” for years, prompting some consumers to travel from out of state, only to learn the price advertised online was unavailable and they would need to pay thousands more.
According to the complaint, 88% of consumers who bought a car from Lindsay’s dealerships between 2020 to 2023 paid, on average, over $2,000 more than the advertised price.
“They would see these low prices and come into the dealerships. But once they got there, they would find out that the price was much more, either because they didn’t qualify for certain discounts, or because they would have to pay additional fees in order to purchase the car,” Weaver told WTOP.
Lindsay deceptively claimed consumers had to pay additional fees to purchase a vehicle if they chose not to finance their purchase through a lender that Lindsay was associated with, the complaint alleged. It also stated that Lindsay charged consumers for add-on products or services that consumers either didn’t consent to or were deceived into purchasing.
WTOP spoke with Maryland Attorney General Anthony Brown, who said buying a car is “a big expense, and consumers should know exactly what they’re paying for up-front, without any surprise fees or extra costs.”
Brown said they will seek restitution for consumers.
“We’re also going to seek penalties and costs against Lindsay,” Brown said. “Perhaps the most important thing is to get them to stop engaging in these unfair and deceptive trade practices.”
In a statement provided to WTOP, a spokesperson from the Lindsay Automotive Group said, “As a responsible company, we are committed to fully complying with the law and providing excellent customer service.”
“You can rest assured that our focus remains where it has always been on providing the absolute best option for our customers and on serving the community in a manner that would make all of our employees, customers, and partners proud. We strongly refute any suggestion of improper conduct and will work to resolve this matter through the legal process,” the statement read.
When purchasing a car, the FTC recommends you bring the advertisement to the dealership with you, read the sales quote and financing agreement carefully, make sure the terms that you agreed upon match the ones in the contract, and get answers about any fees you might not recognize.
If you do encounter a problem, report it to the FTC or the Maryland Attorney General’s Consumer Protection Division.
For car buyers, Brown said this is an important reminder than “when you go to a dealership and you sit down, make sure they walk you through clearly what you’re purchasing.” If you’re not interested in the sale, “get up and walk away.”
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