DC area car dealer group charged with ripping off and overcharging consumers for years

DC-area car dealership group Lindsay Automotive Group is accused of falsely advertising low prices and overcharging consumers for years, costing them millions of dollars.

A group of Virginia car dealers has been accused of falsely advertising low prices and overcharging consumers for years, costing them millions of dollars.

Friday, Federal Trade Commission (FTC) and the Maryland Attorney General made allegations against Lindsay Automotive Group. According to its website, Lindsay Automotive Group was founded in 1963 and is headquartered in Alexandria with locations throughout the region, including Woodbridge, Dulles, Manassas, Warrenton, Springfield, Front Royal and Wheaton.

Mary Weaver, an attorney with the FTC’s Bureau of Consumer Protection, said the complaint alleged that Lindsay “deceived consumers with bait-and-switch advertising, charged consumers for supplements they did not want, and misled consumers about options their funding”.

The charges were filed against Lindsay Management Company, three Lindsay automobile dealers – Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, LLC – along with company co-owner and president Michael Lindsay, COO John Smallwood and former CEO Paul Smyth.

Weaver said, according to Lindsay employees, these dealers “advertised ridiculous and impossible prices online” for years, prompting some consumers to travel from out of state, only to find out the price advertised online was not available and they would have to pay several thousand.

According to the complaint, 88 percent of consumers who bought a car at Lindsay dealerships between 2020 and 2023 paid, on average, more than $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 higher, either because they didn’t qualify for certain discounts or because they would have to pay additional taxes to purchase the car,” Weaver told WTOP.

Lindsay deceptively claimed that consumers had to pay additional fees to purchase a vehicle if they chose not to finance their purchase through a lender Lindsay was associated with, the complaint alleged. It also alleged that Lindsay charged consumers for additional products or services that consumers either did not agree to or were misled 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, with no surprise fees or extra costs.”

Brown said they will seek refunds for consumers.

“We will also be seeking penalties and costs against Lindsay,” Brown said. “Perhaps the most important thing is to get them to stop engaging in these unfair and deceptive business practices.”

In a statement provided to WTOP, a spokesperson for Lindsay Automotive Group said, “As a responsible company, we are committed to fully complying with the law and providing excellent customer service.”

“You can be sure that our focus remains where it has always been on providing the absolute best option for our customers and serving the community in a manner that makes all of our employees, customers and partners proud. We strongly reject any suggestion of misconduct and will work to resolve this matter through the legal process,” the statement said.

When you buy a car, the FTC recommends that you bring the ad to the dealership with you, read the sales quote and finance agreement carefully, make sure the terms you agreed to match those in the contract, and get answers on any charges you may incur. i don’t recognize

If you experience a problem, report it to the FTC or to Maryland Attorney General’s Consumer Protection Division.

For car buyers, Brown said that’s an important reminder than “when you go to a dealership and sit down, make sure they’re very clear on what you’re buying.” If you are not interested in the sale, “get up and walk away”.

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