Attorney General Anthony G. Brown announced today that the Maryland Consumer Protection Division, in collaboration with the Federal Trade Commission, has initiated legal action against Lindsay Management Company and three of its automotive dealerships: Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, L.L.C. The charges also involve individual defendants Michael Lindsay, John Smallwood, and Paul Smyth.
The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, centers on allegations that these entities engaged in unfair and deceptive trade practices in violation of the Maryland Consumer Protection Act. According to the complaint, the dealerships advertised vehicles at prices substantially lower than the actual cost consumers ended up paying, due to undisclosed fees and misleading discount information.
Further accusations include deceptive claims that consumers were required to pay additional fees if opting not to finance their purchase through specific lenders providing kickbacks to Lindsay. The complaint also highlights issues with charges for add-ons such as service contracts, Guaranteed Asset Protection (GAP) coverage, and extended warranties that were either non-consensual or misrepresented as mandatory.
Attorney General Brown emphasized the significance of transparency in automotive purchasing, stating, “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. Our Office will not let car dealerships profit from unfair and deceptive practices.”
Echoing this sentiment, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, warned, “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.”
The lawsuit seeks restitution for affected consumers and aims to impose penalties, cover costs, and secure an injunction to prevent future violations of both Maryland’s Consumer Protection Act and the Federal Trade Commission Act.
Affected consumers are urged to contact the Consumer Protection Division at (410) 528-8662, or online at www.MarylandAttorneyGeneral.gov. Complaints can also be mailed to the Consumer Protection Division at 200 St. Paul Place, 16th Floor, Baltimore, MD 21202.
