The Federal Trade Commission (FTC), in collaboration with 20 states, has initiated a lawsuit against Dollar General Corporation for allegedly engaging in deceptive pricing practices. The complaint asserts that Dollar General has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements, resulting in significant financial harm to consumers.

The states involved in the lawsuit include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. The FTC claims that Dollar General has been aware of these pricing discrepancies for years but has failed to take adequate measures to rectify the situation.

Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized that Dollar General has betrayed consumer trust and imposed financial burdens on communities already struggling financially. The lawsuit aims to address these deceptive practices and protect consumers from unlawful overcharges.

Dollar General operates over 21,000 stores across the United States, positioning itself as a low-cost alternative to larger retailers. The company’s pricing accuracy is particularly crucial for low- and fixed-income customers who rely on affordable household items. The complaint highlights that Dollar General has received tens of thousands of consumer complaints regarding pricing issues, indicating widespread harm.

Despite being informed of the problem, Dollar General has not implemented sufficient policies to prevent these deceptive practices. The FTC and the states allege that these actions violate the FTC Act, the Gramm-Leach-Bliley Act, and various state laws. The case has been filed in the U.S. District Court for the Middle District of Tennessee and will be decided by the court.