FTC, Maryland AG Settle With Lindsay Automotive Group Over Alleged Deceptive Pricing and Add-Ons
The Federal Trade Commission (FTC) and the Maryland Attorney General’s Office have reached a settlement with Lindsay Automotive Group and related defendants over allegations of deceptive pricing, unlawful add-on charges, and misleading financing practices affecting car buyers across the Washington, D.C. region.
Under the agreement, Lindsay will provide refunds to consumers who were allegedly misled during vehicle purchases and leases between April 1, 2020, and December 31, 2025. While the total refund amount has not yet been finalized, officials said more than $75 million in consumer charges may be eligible for restitution. The company will also pay a $3.1 million civil penalty to the Maryland Attorney General’s Office.
The complaint, filed in the U.S. District Court for the Eastern District of Virginia, alleges that Lindsay systematically advertised deceptively low vehicle prices to attract consumers, only to increase costs through undisclosed fees, ineligible rebates, and add-on products.
Regulators claim that most consumers ultimately paid more than the advertised price, with internal data cited in the complaint showing that more than 88% of transactions reviewed exceeded advertised amounts, often by thousands of dollars. The complaint also alleges that 68% of surveyed customers were charged for at least one add-on they did not agree to purchase or were told was required.
The enforcement action further alleges that dealership employees misrepresented financing requirements, telling some consumers they needed to finance through the dealership to obtain advertised pricing, even when customers had prearranged financing through outside lenders.
As part of the settlement, Lindsay is prohibited from misrepresenting material facts in connection with vehicle sales, must clearly disclose total vehicle pricing, including mandatory fees, and must obtain consumers’ express and informed consent before charging for any add-ons.
FTC Bureau of Consumer Protection Director Christopher Mufarrige said the action addresses practices that distorted price competition in the auto marketplace. Maryland Attorney General Anthony G. Brown added that the settlement is intended to return money to affected consumers and halt deceptive conduct.
The case also highlights ongoing enforcement priorities in the auto retail sector. Many of the alleged practices mirror conduct that would have been restricted under the FTC’s CARS Rule, which was recently vacated by a federal appeals court on procedural grounds. In a concurring statement, FTC leadership urged Congress to restore the agency’s authority to seek monetary relief for consumers harmed by violations of the FTC Act.
