FTC, Maryland AG reach settlement with Lindsay Automotive Group

FTC and the Maryland Attorney General have settled their joint lawsuit against Lindsay Automotive Group over allegations of deceptive pricing and unauthorized add‑ons, securing a $3.1 million civil penalty and potential refunds exceeding $75 million for affected consumers.

Core allegations

Regulators alleged that Lindsay Automotive Group and several affiliated dealerships:

• Advertised falsely low vehicle prices that most consumers could not actually obtain, then added mandatory fees and charges during the sales process so buyers paid thousands more than the advertised price.

• Charged consumers for unwanted add‑on products and services (such as service contracts or similar extras) without consent, or implied that optional products were required for the purchase.

• Systematically engaged in these practices from April 1, 2020 through December 31, 2025, affecting a large volume of transactions at multiple Lindsay dealerships in the D.C./Maryland/Virginia area.

The complaint alleged violations of Section 5 of the FTC Act and the Maryland Consumer Protection Act.

Monetary relief and scope

• Consumer redress: Authorities state that more than $75 million in charges from April 1, 2020, to December 31, 2025, may be eligible for refunds, covering overcharges above advertised prices and certain unauthorized or misrepresented add‑ons.

• Civil penalty: Lindsay agreed to pay a $3.1 million civil penalty to the Maryland Attorney General’s Office.

• Case posture: The settlement is embodied in a stipulated order filed in the U.S. District Court for the Eastern District of Virginia and was announced publicly on April 2, 2026 (FTC) with related communications from the Maryland AG.

Consumers eligible for refunds will be contacted by a third‑party claims administrator; Maryland consumers may also contact the AG’s Consumer Protection Division with questions.

Key injunctive provisions and business changes

Under the proposed/ stipulated order, Lindsay Automotive Group and related entities must:

• Provide the total price of the vehicle, including all mandatory fees, upfront to consumers when they are shopping for a vehicle to buy or lease, rather than revealing significant fees only at signing.

• Refund the difference between the advertised price and the actual price paid for qualifying consumers at Lindsay Ford and for Maryland residents at Lindsay Chevrolet and Lindsay Chrysler-Dodge-Jeep-Ram in the relevant period, provided those consumers saw an advertisement listing a lower sales price than they were charged.

• Refund amounts paid at Lindsay Ford for add‑on products or services that consumers did not agree to purchase or believed were required.

• Cease deceptive advertising of low prices that are not genuinely available and stop charging for unauthorized or deceptively presented add‑ons.

FTC leadership framed the case as part of an ongoing focus on ensuring auto dealers compete transparently on price and do not mislead consumers with junk fees and hidden add‑ons.

Parties and covered dealerships

The settlement covers:

• Lindsay Ford, LLC d/b/a Lindsay Ford of Wheaton

• Lindsay Chevrolet, LLC d/b/a Lindsay Chevrolet of Woodbridge

• Lindsay Motors, LLC d/b/a Lindsay Chrysler-Dodge-Jeep-Ram (Manassas area)

• Lindsay Management Company, LLC

• Individual owners/officers including Michael Lindsay, John Smallwood, and Paul Smyth.

The conduct predominantly affected consumers in Maryland and the broader D.C. region who purchased or leased vehicles at these dealerships during the April 2020–December 2025 period.

Implications for auto dealers and compliance

For compliance and industry perspective:

• The case underscores regulators’ scrutiny of “drip pricing” and junk fees in auto sales, particularly discrepancies between advertised prices and the out‑the‑door amount.

• It highlights that add‑ons must be clearly optional, accurately described, and purchased with express, informed consent, not bundled or implied as mandatory.

• It fits into a broader pattern of FTC enforcement against auto dealers and follows recent warning letters to dozens of dealers regarding misleading advertising and sales practices.