On April 2, 2026, the Federal Trade Commission and the Maryland Attorney General announced a settlement with Lindsay Auto Group that is, by almost any measure, a landmark. The dealership group — operating in the Maryland and Washington D.C. area — must provide more than $75 million in full refunds to customers who were charged fraudulent add-on fees between April 2020 and December 2025. On top of that: $3.1 million in civil penalties.
This is one of the largest auto retail settlements in FTC history. And it happened because the playbook Lindsay allegedly ran was not subtle.
What They Actually Did
The complaint describes tactics that will be familiar to anyone who's ever sat in a dealership finance office and felt like the floor was shifting under them.
Fake advertised prices. Customers were drawn in with advertised prices that didn't include mandatory add-ons. By the time they were in the F&I (finance and insurance) office, the actual price was materially higher — but they'd already test-driven the car, negotiated the trade-in, and mentally committed.
Forced add-ons. Three specific products show up repeatedly in the complaint: tire and rim protection plans, vehicle service contracts (extended warranties), and GAP insurance. These products aren't illegal on their own. Forcing customers to buy them as a condition of purchasing the vehicle — or sliding them into contracts without clear disclosure — is.
GAP insurance at inflated prices. GAP covers the difference between what you owe on a loan and what the car is worth if it's totaled. It's a legitimate product that some buyers genuinely benefit from. But Lindsay allegedly charged customers far more than the product is worth in the open market, and many customers didn't even understand they'd bought it.
The FTC's complaint describes customers who discovered add-ons on their contracts they never agreed to. Others who asked about a specific fee were told it was mandatory when it wasn't. That's not aggressive sales. That's deception.
Why $75 Million Matters
To put the number in context: this isn't a fine. It's a refund. Every dollar goes back to the customers who were overcharged. The $3.1 million in civil penalties on top of that is the government's cut for the violation of consumer protection law.
The size of the settlement signals something important: the FTC and state AGs are no longer treating dealer junk fees as a cost of doing business. Lindsay reportedly had years to clean up these practices. They didn't. Now customers are getting their money back.
This Is Not an Isolated Case
If you're reading this thinking "that's a D.C. problem," it isn't. The FTC has issued warning letters to dealer groups across the country. The agency has been building an enforcement record specifically around add-on fee deception for several years, and Lindsay is the biggest case yet — not the last one.
The specific products — tire and rim protection, extended service contracts, GAP — are present at dealerships in every state. The question is whether they're offered transparently or jammed into contracts under pressure.
What You're Entitled to Know Before Signing
Before you put pen to paper in any finance office:
- Get an itemized breakdown of every line item in the financing contract. Every single one.
- Ask explicitly: "Is this add-on required to purchase the vehicle?" If the answer is yes, ask to see that in writing. In most cases, it isn't required.
- Compare GAP insurance prices. Your own insurer or credit union will almost always offer it cheaper than the dealership.
- Take the contract home if you need to. You have the right to review it before signing. Anyone who pressures you to sign immediately is not on your side.
- If you already bought a car from Lindsay Auto Group between April 2020 and December 2025, watch for FTC communications about the refund process.
The Lindsay settlement is a win. But it took five years of overcharging and a federal enforcement action to produce it. The system should work faster than that — and until it does, the best protection is knowing what to demand before you sign.
More guidance at our dealer scam prevention resources.