FTC and 20 states sue Dollar General over alleged price-tag discrepancies

The Federal Trade Commission and attorneys general from 20 states filed a lawsuit on Monday in the U.S. District Court for the Middle District of Tennessee, alleging that Dollar General routinely overcharged shoppers by charging higher prices at the register than those displayed on shelves, tags or advertisements. The complaint says the practice persisted for years across the retailer’s roughly 21,000 stores and resulted in “millions of dollars in unlawful overcharges.”

"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," said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

The FTC argues that many low-income customers rely on the chain’s advertised prices and that inaccurate pricing undermines household budgeting. The suit seeks a permanent injunction, monetary damages and other relief.

Dollar General responded that it was notified of the FTC investigation in early February and that “occasional price discrepancies can occur” despite its policies. The company said it has enhanced its price-accuracy processes and will “defend this litigation vigorously,” while criticizing the FTC’s monetary demand as “untethered to any realistic assessment of amounts attributable to pricing discrepancies.”