WPBN: The Lindsay Management Company, which runs a number of car dealerships, is presently being charged with major offenses for allegedly lying about car prices and participating in activities that raise prices for customers. The Maryland Attorney General’s Office released a press release outlining these accusations.
The Federal Trade Commission (FTC) and the Consumer Protection Division jointly filed the charges against Lindsay Ford, LLC, Lindsay Motors, LLC, and Lindsay Chevrolet, L.L.C., three distinct dealerships controlled by the Lindsay Management Company. Three separate defendants who are connected to the business are also named in the complaint: Paul Smyth, John Smallwood, and Michael Lindsay.
The defendants are charged with engaging in unfair and deceptive trade practices in violation of the Maryland Consumer Protection Act, according to the formal complaint submitted to the U.S. District Court today. The alleged operations included deceiving customers about car prices and using dishonest methods to raise the total amount that buyers had to pay.
Details of the Allegations
1. Falsely representing car prices:
The dealerships allegedly frequently promoted cars at cheaper rates than what customers were actually charged, according to the complaint. Customers were misled into thinking they were buying cars at the listed costs, only to find out later that there were extra charges.
2. Imposition of Extra Charges:
Customers were allegedly told in certain instances that they would need to pay additional costs in order to finish their car purchases. According to reports, the customer had to agree to finance the transaction through a lender selected by the dealership in order for these fees to be waived.
According to the complaint, these lenders gave the Lindsay dealerships “kickbacks” in exchange for referring business to them.
3. Unreported Extra Fees:
Additionally, the defendants are charged with charging customers for “add-on products or services” without getting their permission or knowledge.
Guaranteed Asset Protection (GAP) coverage, extended warranties, and service contracts were some of these extras. Customers frequently didn’t find out about these extra fees until after they had finished their purchases.
Southern California Woman Faces Stricter Charges as Prop 36 Is Now in Effect
Implications for the Law and Consumers:
These actions, according to the FTC and the Maryland Attorney General’s Office, constitute flagrant violations of consumer protection statutes. The dealerships are charged with misleading clients and undermining fair trade practices by imposing unlawful charges and misrepresenting prices.
Possible Results
The Lindsay Management Company and the named defendants may be subject to severe legal repercussions, such as fines, penalties, and orders to stop the dishonest acts, if the accusations are validated in court.
They might also have to reimburse impacted customers who suffered financial losses as a result of their actions.
Say Goodbye to Parking Near Intersections: New California Law Starts Jan. 1
Emphasis on Consumer Protection:
This instance emphasizes how crucial being watchful is to shielding customers from dishonest business tactics. The Maryland Attorney General’s Office has made clear how committed it is to making sure that companies conduct themselves fairly and openly, especially when it comes to big financial transactions like buying a car.
The lawsuit will probably serve as a warning to other dealerships and companies as it develops, highlighting the need of adhering to consumer protection regulations.
“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 stated.
REFERENCE
