What you need to know:
Michigan and 19 other states, alongside the FTC, sued Dollar General, alleging it charged customers more at checkout than advertised.
The complaint says the stores repeatedly mislabeled prices or failed to honor them, despite years of complaints and the company’s knowledge of the problem.
Officials say the practices generated millions of dollars and harmed shoppers, including low-income households that account for about 60 percent of Dollar General’s revenue.
Dollar General operates more than 20,000 stores nationwide and has not commented on the lawsuit filed in federal court in Tennessee.
Michigan, along with 19 other states and the Federal Trade Commission (FTC), is suing discount retail chain Dollar General for allegedly charging customers higher prices at checkout than advertised prices.
The suit, filed Monday by Michigan Attorney General Dana Nessel, claims the company generated millions of dollars through its deceptive pricing practices.
“Consumers everywhere deserve to be treated with respect in any store where they choose to spend their money,” Nessel said in a press release this week. “This is the guiding principle of the Michigan Consumer Protection Act and many other state and federal laws.”
Thousands of Dollar General stores have participated in the overcharging scheme for years by repeatedly mislabeling prices or not honoring advertised prices, according to Nessel.
Despite “extensive knowledge of the problem” and tens of thousands of customer complaints, Dollar General has yet to implement policies and practices to adequately address it, the complaint claims.
According to the company’s CEO, Dollar General is “uniquely positioned to serve underserved customers in rural communities.” Describing itself as “America’s neighborhood general store,” the company operates more than 20,000 stores nationwide and markets itself as an accessible, low-cost alternative to large discount and big-box retailers.
Households earning $35,000 or less account for about 60 percent of the company’s total revenue, the suit says.
“I appreciate the efforts of the FTC and other states in this wide-ranging investigation, and together we can put an end to these deceptive practices and restore some truth about pricing across the country,” Nessel said.
Other states participating in the lawsuit — filed in the U.S. District Court for the Middle District of Tennessee — include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
Dollar General has not commented on the complaint, which you can read here.
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