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Woodbridge Today
By the People, for the People
Dealership Group Faces $75M in Refunds for Alleged Predatory Pricing
Lindsay Auto Group accused of misleading car buyers with false low prices and mandatory add-ons
Apr. 3, 2026 at 7:09pm
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Deceptive pricing practices at auto dealerships continue to erode consumer trust in the car-buying process.Woodbridge TodayThe Federal Trade Commission (FTC) and Maryland Attorney General have taken action against the Lindsay Automotive Group, ordering the dealership chain to pay a $3.1 million civil penalty and issue customer refunds that could total more than $75 million. Authorities allege the dealerships falsely advertised low prices, then charged customers for additional add-ons without their consent, and required them to obtain financing through the dealership.
Why it matters
This case highlights ongoing concerns about deceptive pricing practices in the auto industry, with the FTC and state officials cracking down on dealerships that mislead consumers. It also raises questions about how to protect car buyers, especially military members, from predatory sales tactics.
The details
According to the complaint, the Lindsay Auto Group, which operates dealerships under the names Lindsay Chevrolet of Woodbridge, Lindsay Ford of Wheaton, and Lindsay Chrysler-Dodge-Jeep-Ram, allegedly advertised low vehicle prices but then told customers they didn't qualify for the advertised rebates. The dealerships are also accused of charging customers for add-ons like tire and rim protection and GAP insurance without their agreement.
- The complaint was originally filed in December 2024.
- The alleged misconduct occurred between April 1, 2020 and December 31, 2025.
The players
Lindsay Automotive Group
A dealership group that operates several car dealerships in the Maryland and Virginia area.
Michael Lindsay
The part-owner and president of the Lindsay Automotive Group.
John Smallwood
The chief operating officer of the Lindsay Automotive Group.
Paul Smyth
The former general manager of the Lindsay dealerships.
Federal Trade Commission (FTC)
The U.S. government agency that took action against the Lindsay Automotive Group for alleged deceptive pricing practices.
What they’re saying
“Lindsay Auto misled consumers by advertising false low car prices and then adding mandatory fees and other charges during the car buying process.”
— Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection
What’s next
The Maryland Attorney General's Office will begin notifying customers who may be eligible for a refund. Recipients can check their eligibility by answering a few questions included in the notice and sending it back to the claims administrator.
The takeaway
This case highlights the ongoing need for stronger consumer protections in the auto industry, as dealerships continue to find ways to mislead buyers about pricing and add-ons. It also underscores the importance of government oversight and enforcement actions to hold dealerships accountable and ensure a fair marketplace for car buyers.
