The NoVA-based Lindsay Automotive Group is facing charges for its deceptive advertising, excessive add-on fees, and consistent overcharging of its customers.
The Federal Trade Commission and the Maryland Attorney General announced this week that they have filed a complaint against the automotive group for its deceptive practices, which they say violate the FTC Act and Maryland’s Consumer Protection Act.
A news release from the two agencies says that Lindsay’s actions have cost customers “millions of dollars in junk fees and unwanted add-on products.”
The Alexandria-based car dealership has locations throughout the DMV, including in Woodbridge, Manassas, Front Royal, and Wheaton, Maryland.
The complaint says that Lindsay regularly advertises false prices on its website and in advertisements, touting discount prices that are not really available to the majority of customers. According to the release, customers only learned that the advertised price was not available once they arrived at the dealership — in some cases, after traveling significant distances — and found the price to be “hundreds or even thousands more than advertised.”
Michael Lindsay, part-owner and president of Lindsay Automotive Group, told COO John Smallwood that “We never deliver the vehicle anywhere near the stated price.”
The complaint shows that 88 percent of Lindsay Automotive Group’s customers between 2020 and 2023 paid more than the advertised price. On average, those customers paid $2,000 more than advertised.
Dealers also told customers that they would be required to finance their vehicles through Lindsay rather than paying cash or financing through a different financial institution. More than one-third of customers were told that financing through the dealer was mandatory to purchase the car or to obtain the advertised price. They were directed to financing offers from Lindsay that charged higher interest than what they had obtained on their own.
In addition, Lindsay charged customers for add-on products such as tire and rim protection, asset protection coverage, and other fees they did not consent to. Customers were told these fees were mandatory.
“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,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC and its state partners will continue working to combat this illegal conduct.”
In response, Lindsay Automotive Group said in a statement, “Lindsay Automotive Group (LAG) is a local and family-owned group that has provided affordable, and reliable vehicle purchasing options to the DC metro community for over 60 years. 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.”
Feature image, stock.adobe.com
For more stories like this, subscribe to Northern Virginia Magazine’s News newsletter.
