Twenty states and the FTC sue Dollar General over alleged price-tag discrepancies
Michigan and 19 other states, together with the Federal Trade Commission, have filed a federal lawsuit accusing Dollar General of charging customers more at checkout than advertised, claiming the practice has generated millions in revenue.
Michigan Attorney General Dana Nessel announced that the state, alongside 19 other states and the Federal Trade Commission, has filed a lawsuit in the U.S. District Court for the Middle District of Tennessee against discount retailer Dollar General. The complaint alleges the chain repeatedly mislabelled prices or failed to honor advertised prices, resulting in millions of dollars in overcharges that disproportionately affect lower-income shoppers, who account for about 60% of the retailer’s revenue.
Nessel said in a news release, "Consumers everywhere deserve to be treated with respect in any store where they choose to spend their money," adding that the action is guided by the Michigan Consumer Protection Act and other state and federal laws. The filing claims Dollar General had extensive corporate knowledge of the issue and received tens of thousands of consumer complaints but did not implement adequate corrective measures.
Dollar General, which operates more than 20,000 stores nationwide and markets itself as "America’s neighborhood general store," has not commented on the lawsuit. The company’s CEO describes the chain as "uniquely positioned to serve underserved customers in rural communities."