A Virginia-based car dealership group has faced allegations of engaging in deceptive practices, including false advertising of low prices and overcharging consumers, resulting in significant financial losses for customers over an extended period.
The Lindsay Automotive Group, established in 1963, is facing charges filed by the Federal Trade Commission (FTC) and the Maryland Attorney General on Friday. Headquartered in Alexandria, the group has multiple locations across the region, including Woodbridge, Dulles, Manassas, Warrenton, Springfield, Front Royal, and Wheaton.
According to Mary Weaver, a staff attorney at the Federal Trade Commission’s Bureau of Consumer Protection, the complaint filed against Lindsay accuses the company of engaging in deceptive practices. Specifically, it is alleged that Lindsay used bait and switch advertising, charged customers for unwanted add-ons, and misled customers about their financing options.
The Lindsay Management Company, along with three Lindsay automotive dealerships (Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, L.L.C.), are facing charges. The company’s part-owner and president, Michael Lindsay, COO John Smallwood, and former general manager Paul Smyth are also named in the charges.
According to Lindsey employees, these dealerships have been advertising absurdly low and unrealistic prices online for years. This has led to numerous instances where unsuspecting customers from out of state would make the journey, only to discover that the advertised price was not valid and they would have to pay thousands of dollars more than expected.
The complaint alleges that the average consumer who purchased a car from Lindsay’s dealerships between 2020 and 2023 paid over $2,000 more than the advertised price, representing 88% of consumers.
According to Weaver, customers would be enticed by the low prices they saw at the dealerships. However, upon arrival, they would discover that the actual price was much higher. This could be due to their ineligibility for certain discounts or the requirement to pay additional fees in order to complete the purchase.
According to the complaint, Lindsay allegedly made false claims, stating that customers would have to pay extra fees if they did not finance their vehicle through a lender affiliated with Lindsay. Additionally, the complaint alleged that Lindsay charged customers for additional products or services without their consent or through deceptive means.
In a recent interview with Maryland Attorney General Anthony Brown, he emphasized the importance of transparency and clarity when it comes to purchasing a car. Brown believes that consumers should be fully aware of the costs associated with buying a vehicle, without any unexpected fees or additional expenses.
Brown stated that they would pursue restitution on behalf of consumers.
“We will also pursue penalties and costs against Lindsay,” Brown asserted. “The primary objective is to compel them to cease their participation in these unethical and deceitful business practices.”
The Lindsay Automotive Group spokesperson expressed their commitment to adhering to the law and delivering exceptional customer service. They stated, “As a responsible company, we are fully dedicated to complying with all legal requirements.”
“Our top priority is to continue delivering the best possible solution to our customers and to serve our community in a way that ensures the satisfaction of our employees, customers, and partners. We firmly deny any allegations of misconduct and are committed to resolving this issue through the appropriate legal channels,” stated the company.
When you buy a car, the FTC advises bringing the advertisement to the dealership. It’s important to carefully read the sales quote and financing agreement, ensuring that the terms you agreed upon match those in the contract. Don’t hesitate to ask about any fees that you may not recognize.
If you come across any issues, make sure to report them to either the FTC or the Consumer Protection Division of the Maryland Attorney General.
When you visit a car dealership and sit down to make a purchase, it is crucial to ensure that the salesperson provides you with a clear explanation of what you are buying. This is a valuable reminder for car buyers, according to Brown. If you are not interested in the sale or feel unsure about the details, do not hesitate to get up and walk away.
