FTC, New Jersey and 19 other states sue Dollar General over alleged price overcharges
NEW JERSEY — The Federal Trade Commission and 20 states, including New Jersey, have filed a lawsuit against Dollar General Corp., alleging the discount retailer repeatedly charged customers more at checkout than the prices advertised on store shelves, price tags and advertisements.
The lawsuit accuses Dollar General of engaging in deceptive pricing practices for years, resulting in millions of dollars in alleged overcharges to consumers nationwide. Federal and state officials claim the company failed to adequately address the problem despite receiving numerous complaints and having extensive knowledge of the pricing discrepancies.
“Dollar General has betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans.”
Dollar General operates more than 21,000 stores nationwide and promotes itself as a low-cost alternative to larger discount and big-box retailers. The company sells thousands of household products, including everyday necessities, and serves customers who may rely on advertised prices to manage limited household budgets.
According to the complaint, thousands of Dollar General stores allegedly charged shoppers higher prices at checkout than those displayed on shelves or in advertisements, generating millions of dollars in unlawful overcharges.
Federal regulators also allege the company received tens of thousands of consumer complaints from across the country involving discrepancies between advertised prices and amounts charged at the register. The FTC and participating states contend those complaints demonstrate that the problem was widespread and that Dollar General was aware customers were being overcharged.
Despite that knowledge, the lawsuit alleges Dollar General failed to establish adequate safeguards, policies and procedures to prevent the discrepancies or correct them consistently.
The FTC and state officials argue that the alleged practices are particularly harmful to low-income and fixed-income consumers who depend on accurate pricing when purchasing groceries, household supplies and other essential products.
New Jersey is among the 20 states participating in the lawsuit, along with Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
The complaint alleges violations of the Federal Trade Commission Act, the Gramm-Leach-Bliley Act and applicable state laws.
The FTC voted 2-0 to authorize the filing of the complaint, which was submitted to the U.S. District Court for the Middle District of Tennessee.
The allegations have not been proven in court, and the lawsuit does not establish that Dollar General violated the law.
The FTC and participating states are seeking to hold the retailer accountable for the alleged deceptive pricing practices and address the financial harm they say consumers have experienced.
