The Federal Trade Commission and 20 states filed suit against Dollar General on Monday, charging that the budget retailer systematically overcharged customers by charging more at the register than prices displayed on shelves, price tags and advertisements. The chain operates 21,000 stores nationwide. The FTC alleged the company engaged in a pattern of inaccurate pricing that persisted for years and affected millions of purchases across the country, extracting millions of dollars in unlawful overcharges.
Christopher Mufarridge, director of the FTC's Bureau of Consumer Protection, said the conduct betrayed consumer trust. "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," he stated. The FTC emphasized that American consumers depend on Dollar General's advertised low prices to manage household finances on tight budgets, and that inaccurate pricing makes it impossible for them to do so.
According to the FTC's complaint, thousands of Dollar General stores unlawfully overcharged shoppers over the period in question. The agency said the company "has for years engaged in deceptive conduct that harms the very consumers it claims to serve," despite promising convenience, low prices and value. The FTC pointed to thousands of consumer complaints claiming Dollar General failed to honor advertised prices at checkout as evidence the company knowingly harmed customers.
The lawsuit was filed in U.S. District Court for the Middle District of Tennessee, Dollar General's home state. The FTC is seeking a permanent injunction along with monetary and other relief. Dollar General did not immediately respond to a request for comment.