Virginia Group Could Pay $75 Million in Restitution After Settlement
The Federal Trade Commission and the attorney general of Maryland say Lindsay Automotive Group will pay a $3.1 million penalty to the state and up to $75 million in customer restitution to settle charges of deceptive advertising and pricing.
Maryland AG Anthony G. Brown initially sued Lindsay Automotive in December, alleging that customers of three Washington, D.C.-area dealerships owned by the Alexandria, Va.-based group were “systematically” overcharged starting in April 2020.
“We filed this lawsuit because Lindsay dealerships misled Maryland car buyers into overpaying for their vehicles. This settlement puts money back in Marylanders’ pockets and puts a stop to these predatory practices,” Brown writes. “Our office is committed to ensuring that every Maryland consumer who does business with a car dealership is treated fairly.”
Among other allegations, the complaint says Lindsay advertised prices reduced by rebates not available to all customers; preemptively charged customers for voluntary protection products; and told some customers they had to finance their purchase through the dealership.
“The Trump-Vance FTC is focused on ensuring that auto dealers competitors’ are transparently competing on price,” writes Christopher Mufarrige, the director of the FTC’s Bureau of Consumer Protection who recently sent warning letters to 97 U.S. dealerships the agency suspected of engaging in deceptive pricing practices.
