The Federal Trade Commission and attorneys general from 20 states filed a lawsuit Monday against Dollar General, alleging the discount retailer routinely charged shoppers more at the register than the prices it advertised.
The retailer, which has roughly 21,000 locations across the United States, allegedly displayed inaccurate prices for years and collected “millions of dollars in unlawful overcharges,” according to the FTC.
“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, said in a statement.
The agency said many shoppers rely on Dollar General’s low advertised prices to stretch limited household budgets. When the price charged at checkout does not match a promotion or shelf label, consumers can be left unable to accurately plan their spending.
The FTC filed its complaint in the U.S. District Court for the Middle District of Tennessee, where Dollar General is headquartered.
Dollar General did not immediately respond to a request for comment.
“Inaccurate pricing”
The lawsuit alleges that shoppers were overcharged at thousands of Dollar General stores nationwide.
“Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements,” the FTC and the states said in the complaint. They allege the deceptive pricing practices continued for years and affected millions of transactions across the country.
The FTC also pointed to thousands of consumer complaints alleging that Dollar General failed to honor advertised prices at checkout. The agency said the volume of complaints indicates the company was aware that shoppers were being charged more than they expected.
The complaint seeks a permanent court order barring the alleged practices, as well as financial compensation and other remedies.
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