Law

Maryland AG and FTC Sue Dealerships for Deceptive Trade Practices

Attorney General Anthony G. Brown and the FTC have filed charges against Lindsay Management Company and its dealerships for alleged deceptive trade practices, including misleading pricing, unauthorized add-ons, and financing kickbacks, violating Maryland and federal consumer protection laws.

Per the Maryland Attonery General’s Office: “Attorney General Anthony G. Brown announced today that his Consumer Protection Division, together with the Federal Trade Commission, filed charges against Lindsay Management Company, three Lindsay automotive dealerships – Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, L.L.C. – and individual defendants Michael Lindsay, John Smallwood, and Paul Smyth. Lindsay Ford, LLC, operates the Lindsay Ford dealership located in Wheaton, Maryland, while the other dealerships are located in Virginia.

The complaint, filed today in the U.S. District Court for the Eastern District of Virginia, alleges that the defendants committed unfair and deceptive trade practices that violated the Maryland Consumer Protection Act. The dealerships are accused of advertising vehicles at prices significantly lower than what consumers actually had to pay, due to added fees, misleading discounts, or other deceptive practices.

The complaint also alleges that defendants falsely claimed consumers would need to pay additional fees if they did not finance their vehicle purchases through lenders that provided monetary “kickbacks” to Lindsay. Additionally, the defendants are accused of charging consumers for add-on products or services, such as service contracts, Guaranteed Asset Protection (GAP) coverage, and extended warranties, without consent or through deceptive practices.

“Buying a car is a significant financial investment. Marylanders deserve to know upfront how much they will actually pay for a vehicle and should not be surprised by hidden charges that they did not budget for,” said Attorney General Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”

“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,” added 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.”

The Consumer Protection Division’s lawsuit seeks restitution for consumers, along with penalties, costs, and an injunction to prevent the defendants from further violating Maryland’s Consumer Protection Act or the Federal Trade Commission Act.

Consumers with complaints against Lindsay Ford in Wheaton can contact the Consumer Protection Division at (410) 528-8662, file a complaint online at www.MarylandAttorneyGeneral.gov, or write to the Consumer Protection Division at 200 St. Paul Place, 16th Floor, Baltimore, MD 21202.”