FTC Shows No Signs of Letting Up on Enforcement Actions Against Deceptive Practices in Auto Industry

Published
Score
5

Why it matters

Core event: On April 2, 2026, the FTC and Maryland Attorney General’s Office settled a lawsuit against Lindsay Automotive Group for deceptive advertising and sales practices in new car sales, including advertising low prices but adding fees and unwanted add-ons like service plans and asset protection.[1][7][8]

Involved parties: Agencies: FTC and Maryland AG. Defendants: Lindsay Automotive Group (three Maryland dealerships), its president, chief operating officer, and former general manager.[1][7] Related: FTC warning letters to 97 dealer groups (March 13, 2026); ongoing cases against Leader Automotive, Asbury Automotive, and others.[3][4][5][8]

Context and timeline: Complaint filed December 2024 alleging practices from April 2020–December 2025, overcharging >$75M; settlement mandates refunds/notice to consumers and $3.1M penalty.[1][7] Follows FTC's CARS Rule (Dec 2023, vacated Jan 2025 by 5th Circuit), shifting to case-by-case enforcement under FTC Act §5 post-Supreme Court limits on relief.[1][5][7] Recent FTC actions include March 2026 warnings targeting "junk fees," rebates, financing conditions, and fake ads.[3][4][5][9]

Newsworthy now: Signals FTC's unrelenting auto industry crackdown despite CARS Rule failure, with settlements echoing rule's total-price disclosure and broad warnings to 1,000+ locations amid Trump-Vance FTC emphasis on transparency.[1][3][4][7][9]

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