FTC & Maryland Move Against Auto Dealer Practices

Key Takeaways

• $75M in Consumer Harm and Refunds: More than $75 million in charges may be eligible for refunds tied to alleged deceptive pricing practices between 2020 and 2025.
• Misleading Pricing Model: Regulators allege Lindsay advertised low prices that were not broadly available, with rebates and conditions pushing actual costs higher.
• Add-Ons and Financing Pressure: Consumers were allegedly steered into dealership financing and charged for add-ons without clear consent, inflating final purchase prices.
• New Transparency Requirements: The settlement mandates upfront disclosure of total vehicle pricing and explicit consumer consent for any additional fees or products.

Deep Dive

Federal and state regulators have reached a settlement with Lindsay Automotive Group, forcing the dealership network to return money to consumers and change how it prices and sells vehicles after years of alleged deceptive practices.

The case, brought jointly by the Federal Trade Commission and the Maryland Attorney General’s Office, centers on a familiar but costly pattern in auto retail where advertised prices that did not hold up once buyers walked into the showroom.

Between April 2020 and the end of 2025, regulators say consumers were charged more than $75 million under practices now under scrutiny. Under the proposed settlement, those consumers may be eligible for refunds, while Lindsay will also pay a $3.1 million civil penalty to the state of Maryland.

For regulators, the issue was not a single misleading ad or isolated complaint, but what they describe as a system. The agencies’ complaint, filed in late 2024, alleges that Lindsay dealerships routinely advertised low prices that most buyers could not actually obtain. Customers were often told they did not qualify for rebates baked into those headline prices, pushing the real cost higher by the time a deal was finalized.

The complaint also points to pressure around financing. According to regulators, some consumers were told they needed to finance through the dealership to access advertised pricing, despite already having financing in place—including through military credit unions in some cases.

Then came the add-ons. The agencies allege that charges for products like service plans, tire and rim protection, and guaranteed asset protection were added without clear agreement, sometimes increasing the total price by hundreds or thousands of dollars.

Officials framed the case as part of a broader push to ensure price competition in the auto market is based on reality rather than fine print. Christopher Mufarrige of the FTC’s Bureau of Consumer Protection said the agency is focused on making sure dealers compete transparently on price, while Maryland Attorney General Anthony G. Brown pointed to the direct financial harm to consumers in the state.

The settlement aims to do more than return money. It places new constraints on how Lindsay can advertise and sell vehicles going forward. The company will be required to present the full price of a vehicle upfront, with only government-imposed fees excluded, and will be barred from misrepresenting whether financing is required to obtain a particular deal.

It must also obtain clear, informed consent before charging consumers for any add-ons or fees, which is a provision that goes to the heart of the agencies’ allegations.

For affected buyers, the next step will be a claims process overseen by Maryland authorities. Consumers identified as potentially eligible will receive notices explaining how to confirm their eligibility and seek refunds.

The case lands at a moment when auto retail practices are drawing renewed scrutiny, particularly around pricing transparency and add-on products. It serves as a reminder that disclosures, consent, and consistency between advertised and actual pricing are not just customer experience issues, they are increasingly enforcement priorities.

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