FTC and 20 States Sue Dollar General Over Checkout Prices
The Federal Trade Commission and 20 states sued Dollar General, alleging the retailer repeatedly charged customers more at checkout than prices shown on…
The Federal Trade Commission and 20 states sued Dollar General on Monday, alleging the retailer charged shoppers more at checkout than prices displayed on shelves and in advertisements. The complaint says the alleged inaccurate pricing affected thousands of stores and millions of purchases.
The lawsuit puts a direct question to shoppers who rely on the chain’s advertised low prices: whether the amount shown on a shelf or promotion matches what they pay at the register. The FTC and states are seeking a permanent injunction, along with monetary and other relief.
Dollar General overcharged millions, FTC alleges
The FTC filed the complaint in the U.S. District Court for the Middle District of Tennessee, Dollar General’s home state. The agency alleges that the company mislabeled prices for years, “extracting millions of dollars in unlawful overcharges.”
Dollar General operates 21,000 stores nationwide, according to the lawsuit reported by CBS News. The FTC and states say shoppers routinely encountered a higher price at checkout than the one displayed on a shelf, price tag or advertisement.
“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,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
The agency said consumers depend on the retailer’s advertised low prices to manage tight household budgets. When checkout prices do not reflect advertised deals, the FTC said, shoppers cannot reliably plan their household finances.
Complaint cites years of pricing problems
The complaint alleges the conduct continued for years and affected millions of purchases across the country. It also cites thousands of consumer complaints that the company failed to honor advertised prices at checkout. The FTC says those complaints indicate Dollar General knowingly harmed customers.
“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 and states allege in the suit. They describe the inaccurate pricing as a pattern that persisted for years.
The case is a federal action brought by the FTC and 20 states. The filing seeks a permanent injunction and monetary and other relief; the source report does not specify a requested dollar amount or describe a proposed refund plan for customers.
Dollar General did not immediately respond to a request for comment, CBS News reported. The lawsuit’s allegations have not been presented in the source report as a court finding.
For customers, the dispute centers on a basic part of a retail purchase: the price presented before checkout. If the allegation is established, shoppers may have paid more than the listed price on affected purchases, while the FTC argues that the discrepancy can make household budgeting harder.
The case now sits in the U.S. District Court for the Middle District of Tennessee, where the FTC and states are seeking a permanent injunction.
Source: cbsnews.com
