Dollar General overcharged people at checkout for years, FTC says
The discount retailer routinely charges customers more at checkout than the prices it displays on shelves, price tags and ads, according to federal and state authorities.
Key points
- The FTC and 20 states sued Dollar General on Monday, accusing it of charging customers more at checkout than advertised prices.
- The complaint was filed in the U.S. District Court for the Middle District of Tennessee and seeks a permanent injunction plus monetary and other relief.
- Dollar General said it will defend the litigation vigorously and that it was made aware of the FTC investigation in early February.
The Federal Trade Commission and 20 states sued Dollar General on Monday, accusing the budget retailer of charging customers more for products than it advertised. The chain operates 21,000 stores nationwide.
The FTC alleged that Dollar General mislabeled prices for years, "extracting millions of dollars in unlawful overcharges," according to the article. The complaint was filed in the U.S. District Court for the Middle District of Tennessee, Dollar General's home state.
What the lawsuit alleges
According to the suit, thousands of Dollar General stores unlawfully overcharged shoppers. The FTC and states alleged the company "has for years engaged in deceptive conduct that harms the very consumers it claims to serve."
The suit claims customers were routinely charged more at the register than the prices shown on shelves, price tags and advertisements, and that the practice affected millions of purchases. The FTC also pointed to thousands of consumer complaints about advertised prices not being honored at checkout as a sign Dollar General knowingly harmed customers. The suit seeks a permanent injunction along with monetary and other relief.
Dollar General has betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last.
— Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection
How Dollar General responded
Dollar General said its goal is "100% accuracy between shelf and register prices in every store." It said occasional price discrepancies can occur despite its policies and that store teams are expected to correct them for customers.
The company said it was made aware of the FTC's investigation in early February and that it worked in good faith to resolve the matter without litigation. It said FTC staff sought a monetary amount far larger than any realistic assessment of pricing discrepancies, and that it will defend the lawsuit vigorously.
