FTC, 20 States Sue Dollar General Over Checkout Prices

The US Federal Trade Commission (FTC) and 20 states have sued Dollar General, alleging that the discount retailer repeatedly charged customers more at checkout than the prices displayed on store shelves, price tags and advertisements, Shubhendu Vimal reported for Retail Insight Network.

Dollar General is facing a lawsuit from the Federal Trade Commission and 20 states over allegations of inaccurate shelf pricing and customer overcharges. [Photo: NNECAPA Photo Library Flickr]

The complaint was filed in the US District Court for the Middle District of Tennessee.

The FTC voted 2-0 to authorize the lawsuit, which accuses Dollar General of engaging in long-running deceptive pricing practices that allegedly cost consumers millions of dollars.

According to the complaint, the company repeatedly failed to honor advertised prices despite being aware of recurring discrepancies identified through internal audits, customer complaints and government inspections.

The FTC and state officials allege that Dollar General did not establish adequate safeguards to prevent customers from being charged more at checkout than the prices displayed on store shelves.

The complaint cites tens of thousands of customer complaints nationwide, including reports that the retailer failed to honor marked prices.

It argues that the discrepancies have caused widespread financial harm, particularly among lower-income consumers who rely on discount retailers for affordable household necessities.

The lawsuit follows earlier enforcement actions involving Dollar General's pricing practices.

The company has previously reached settlements with state authorities over similar allegations and paid penalties in connection with those cases.

The latest legal action seeks to hold the retailer accountable for the alleged practices and obtain relief for affected consumers. Dollar General will have an opportunity to respond to the allegations in court.