The Lindsay Management Company’s dealerships are facing charges in connection with misrepresenting vehicle prices and other violations that lead to higher costs for consumers, according to the Maryland Attorney General’s Office in a press release.
The Consumer Protection Division and the Federal Trade Commission filed the charges against three of the company’s dealerships: Lindsay Ford, LLC; Lindsay Motors, LLC; and Lindsay Chevrolet, LLC, as well as individual defendants Michael Lindsay, John Smallwood, and Paul Smyth, officials said.
In the complaint, which was filed Friday, the U.S. District Court alleges that “the defendant committed unfair and deceptive trade practices that violated the Maryland Consumer Protection Act,” the release said.
The complaint also alleges that the dealership advertised lower prices of vehicles than what consumers ultimately paid. The defendants then told consumers that they must pay extra fees to purchase the vehicle unless they financed the purchase through a lender that provided the Lindsay Automotive Dealership with “kickbacks,” the release said.
Furthermore, the defendants are accused of charging consumers for “add-on products or services,” which included service contracts, extended warranties, and Guaranteed Asset Protection coverage. Consumers were not told about these purchases and did not consent to them, the release said.
“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,” Attorney General Brown said.
The Consumer Protection Division’s lawsuit seeks to provide restitution for consumers, impose penalties, and prevent the defendants from violating Maryland’s Consumer Protection Act or the Federal Trade Commission Act, the release said.