The Federal Trade Commission and 20 states have sued Dollar General, accusing the retailer of routinely charging customers more at checkout than the prices displayed in stores and advertisements. The case was filed in the U.S. District Court in Middle Tennessee.
The FTC alleges that the pricing problem continued for years and affected millions of purchases. The agency’s complaint says customers were sometimes charged more at the register than the price shown on a shelf, product, price tag, circular or in-store promotion. The allegations have not been proven in court.
“Dollar General has for years engaged in deceptive conduct that harms the very consumers it claims to serve,” the lawsuit stated.
The agency also alleges that shoppers could have difficulty identifying the higher price during checkout. According to the FTC, prices appear quickly on the register screen, making it difficult for customers to compare the amount charged with the advertised or posted price in the moment.
What the complaint alleges
Dollar General promotes low prices through weekly circulars, in-store offers and other advertised deals, according to the complaint. The FTC says those promotions were misleading when the amount charged at the register exceeded the advertised price. The agency characterized the alleged conduct as especially significant because the retailer serves many rural communities and lower-income urban neighborhoods.
- The FTC and 20 states filed the federal lawsuit.
- The complaint alleges that register prices exceeded shelf, tag and advertising prices.
- The FTC says the alleged pattern affected millions of purchases.
Dollar General is headquartered in Goodlettsville, Tennessee, and operates about 20,000 stores in 48 states. The company made more than $42 billion in net sales last year, according to the report. About 80% of its stores are in towns with fewer than 20,000 residents, while households earning $35,000 or less account for 60% of its revenue, the report said.
Prior state settlements
The federal case follows more than $6 million in previous settlements involving state attorneys general, according to The Guardian. Those matters include a $1.9 million settlement with New York. The earlier settlements and the new federal complaint concern alleged pricing practices; the filing itself is not a final court finding.
The FTC described the alleged pricing conduct this way:
“Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements,” the FTC stated.
The lawsuit puts the retailer’s pricing practices before a federal court. The case will determine whether the FTC and the states can prove the allegations and what relief, if any, may follow. Dollar General’s response was not included in the report.
