Dollar General overcharged millions at checkout for years, FTC and 20 states say

The Federal Trade Commission and 20 states sued Dollar General on Monday, accusing the discount retailer of charging customers more for products than it advertised.

The chain, which operates 21,000 stores nationwide, allegedly mislabeled prices for years, “extracting millions of dollars in illegal overcharging,” the FTC alleged.

“Dollar General betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make paychecks last,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.

The FTC added that U.S. consumers depend on Dollar General’s advertised low prices to make ends meet on tight budgets, while prices that don’t reflect advertised deals make it impossible for them to manage household finances.

The agency filed its complaint in the U.S. District Court for the Middle District of Tennessee, Dollar General’s home state.

Dollar General did not immediately respond to a request for comment.

“Inaccurate prices”

According to the suit, thousands of Dollar General stores illegally overcharged their shoppers.

Dollar General “has for years engaged in deceptive conduct that harms the very consumers it claims to serve,” the FTC and states allege in the suit. “Even though Dollar General promises convenience, low prices and value, the company routinely charges its customers higher prices at checkout than the prices displayed on shelves, price tags and advertisements. This trend of inaccurate pricing has persisted for years and affects millions of purchases across the country.

The company also faced thousands of complaints from consumers saying it failed to honor advertised prices at checkout, a sign that Dollar General knowingly harmed customers, according to the FTC.

The suit seeks a permanent injunction, as well as monetary and other relief.