Dollar General is being sued by the Federal Trade Commission (FTC) and 20 U.S. states, which are accusing the corporation of "mislabelled prices" and "overcharging consumers," the FTC announced.
“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,” the director of the FTC’s Bureau of Consumer Protection, Christopher Mufarrige, said in a statement posted to the FTC's website on Monday, Oct. 26.
The complaint stated that the chain failed to address the issue and continued to mislead customers by charging a higher price at the register than the shelf price. It also accused the corporation of knowing about
the price inconsistency and failing to address it.
USA TODAY has contacted Dollar General for comment.
Here's what to know about the lawsuit.
'False or misleading claims'
The FTC and the 20 states are suing the corporation after accusing it of making "false or misleading claims" that "constitute unlawful, unfair and/or deceptive acts and practices that are prohibited" by consumer protection laws, according to court documents. By allowing the price discrepancy to continue, the lawsuit states that the corporation has violated the FTC Act, the Gramm-Leach-Bliley Act and state laws.
The lawsuit cites complaints from Dollar General customers, inspections by state authorities that Dollar General failed, and FTC shopping sprees.
"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 court document stated. "This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country."
According to the FTC, thousands of customers have filed complaints about pricing discrepancies with Dollar General, which operates more than 21,000 stores across the country.
What 20 states are involved in the lawsuit?
The following states joined the FTC in filing the complaint, according to court documents published by the FTC:
- Alabama
- Arizona
- Arkansas
- California
- Connecticut
- Florida
- Illinois
- Iowa
- Kansas
- Louisiana
- Michigan
- Mississippi
- Nebraska
- New Jersey
- North Carolina
- Ohio
- Oklahoma
- Tennessee
- Utah
- Wisconsin
Can't see map? Click here
Legal scrutiny over pricing at Dollar General
The accusations against Dollar General are not new, and the corporation has paid millions in settlements over pricing.
Dollar General has paid $6 million in settlements with six states due to inaccurate pricing since 2019, according to Reuters.
Could customers be compensated?
In its announcement, the FTC did not say whether or when customers can expect to receive a portion of a settlement if the lawsuit goes through.
However, the court document states that the FTC is seeking a "permanent injunction, monetary relief, and other relief" for the violations Dollar General is accused of.
Contributing: Reuters
Julia Gomez is a Trending reporter for USA TODAY and covers space phenomena, scientific studies and natural disasters. Connect with her on LinkedIn, X, Instagram, and TikTok: @juliamariegz, or email her at jgomez@gannett.com.
This article originally appeared on USA TODAY: FTC, 20 states sue Dollar General for allegedly overcharging shoppers
