The Federal Trade Commission, joined by 20 state attorneys general, filed a lawsuit against Dollar General alleging the discount retailer engaged in widespread price overcharging practices. The complaint contends that thousands of Dollar General locations charged customers amounts exceeding the prices advertised on shelf tags, price labels, and promotional materials.
According to the FTC, Dollar General extracted millions of dollars through unlawful overcharges while maintaining insufficient controls to prevent such pricing discrepancies. The agency stated that the company received tens of thousands of consumer complaints regarding pricing disparities but failed to implement adequate policies or procedures to remedy the issue and prevent future occurrences.
The participating states in the enforcement action include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, characterized the allegations as a breach of consumer trust that disproportionately affected economically vulnerable populations.
Dollar General responded by stating it would vigorously defend against the litigation. The company acknowledged that occasional pricing discrepancies can occur at retail establishments and asserted that store employees are instructed to correct such errors when discovered. Dollar General indicated it has enhanced price-accuracy processes in recent years and emphasized its commitment to ongoing improvements. The company noted that it had cooperated with the FTC investigation since February and had submitted a monetary counteroffer following the agency’s September draft complaint, expressing surprise that the FTC proceeded with litigation rather than negotiating a settlement.
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