FTC accuses Dollar General of overcharging shoppers

The FTC and 20 states are suing the discount store chain, claiming it has repeatedly charged customers higher prices than advertised.(CN) — The Federal Trade Commission and 20 states sued the discount chain Dollar General Monday, claiming it has routinely charged customers higher prices than listed on price tags or in advertisements for years.The chain markets itself as a convenient, low-priced alternative to big-box stores and operates more than 21,000 locations across the U.S., with most located in small towns or rural areas. In a complaint filed in the U.S. District Court for the Middle District of Tennessee, the FTC and states say it has failed to adopt adequate safeguards to prevent overcharging despite having failed thousands of pricing inspections and receiving tens of thousands of consumer complaints, resulting in millions of dollars in overcharges.“As a direct result of Dollar General’s unlawful conduct, consumers nationwide have paid significantly more than they expected for basic household goods and necessities, enriching Dollar General at the expense of the low-income and rural households it markets itself as serving,” the plaintiffs write in the complaint. “Rather than ensuring its prices at checkout are accurate, for years Dollar General avoided implementing safeguards to prevent continued overcharging, effectively shifting the burden of its own operational shortcomings onto the very communities and consumers who can least afford it.”The plaintiffs claim Dollar General has violated the FTC Act, the Gramm-Leach-Bliley Act and state consumer protection and weights and measures laws. They seek monetary relief, including forfeiture, civil penalties and restitution for affected customers, as well as a permanent injunction to prevent future violations.Courthouse News Service reached out to Dollar General for comment but has not received a response.“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 FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans.”Earlier this month, Dollar General reached a settlement with New York’s attorney general in a similar case, agreeing to donate $1.875 million worth of food and personal items to Foodlink, a Rochester-based food bank and public health nonprofit. Dollar General has previously reached overcharge settlements with the attorneys general of Colorado, Pennsylvania and Vermont, as well as a $15 million settlement in a class action on behalf of overcharged consumers.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads