FTC, Maryland AG Secure $75M Refunds in Lindsay Auto Group Settlement

2 min readSources: Lex Blog

Lindsay Automotive Group will pay $75 million in consumer refunds and a $3.1 million penalty for deceptive fees.

Why it matters: The settlement underscores intensifying regulatory scrutiny of consumer-facing businesses and highlights the need for transparent advertising and compliance with pricing laws.

  • The FTC and Maryland AG alleged Lindsay misled car buyers with false low prices and hidden fees.
  • The agreement mandates over $75 million in consumer refunds and a $3.1 million civil penalty.
  • Lindsay Automotive Group must now clearly disclose total vehicle prices, including all mandatory fees.
  • Senior executives and three dealerships were named in the official complaint.

The Federal Trade Commission (FTC) and Maryland Attorney General have secured a settlement with Lindsay Automotive Group requiring the company to refund over $75 million to consumers and pay a $3.1 million penalty. The agreement follows allegations that Lindsay systematically added unauthorized fees and unwanted add-on products when selling vehicles between April 2020 and December 2025.

  • Consumers were allegedly enticed by false low prices in Lindsay's advertising, only to face additional mandatory fees at purchase. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated, "Lindsay Auto misled consumers by advertising false low car prices and then adding mandatory fees and other charges during the car buying process."
  • Maryland Attorney General Anthony G. Brown added, "This settlement puts money back in Marylanders’ pockets and puts a stop to these predatory practices."
  • The settlement, which also includes Lindsay's management company and several executives, requires that total pricing disclosures must clearly include all mandatory fees and add-ons for both sales and leases.

This case signals ongoing regulatory attention toward deceptive advertising and sales tactics in the auto industry and reinforces that companies must prioritize compliance and transparent consumer communications. For legal teams advising consumer-facing companies, comprehensive advertising oversight and prompt risk assessments remain critical compliance measures.

By the numbers:

  • $75 million — Total consumer refunds ordered under the settlement
  • $3.1 million — Civil penalty paid by Lindsay Automotive Group
  • April 2020–December 2025 — Period when deceptive practices occurred