The Federal Trade Commission, joined by 20 states, has sued Dollar General for alleged “long-running deceptive pricing practices” by charging customers more at registers than what was displayed on shelves or published in advertisements.
In a complaint filed on Monday in the U.S. District Court for the Middle District of Tennessee, the plaintiffs said that the bargain store chain failed to correct the pricing discrepancies despite “extensive corporate knowledge of the problem.”
According to a news release, the states joining the FTC lawsuit include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
“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.”
Dollar General, based in Goodlettsville, Tennessee, did not immediately return a request for comment from The Associated Press.
The complaint alleges that thousands of Dollar General outlets have taken advantage of “vulnerable shoppers” due to alleged overcharging of items.
The complaint further states that Dollar General received “tens of thousands” of complaints from consumers nationwide, who said the company did not honor advertised prices.
The lawsuit also alleges that Dollar General knew that it was harming consumers by charging more at the register.
The plaintiffs allege that Dollar General’s practices violate the FTC Act, the Gramm-Leach-Bliley Act and state laws.
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