FTC and 20 States Sue Dollar General Over Checkout Overcharges

The Federal Trade Commission and 20 states filed a lawsuit against Dollar General on Monday. The government agencies accuse the budget retailer of systematically charging shoppers more at the register than the prices advertised on shelves and tags.

The complaint alleges the chain extracted millions of dollars in unlawful overcharges over several years. Dollar General operates 21,000 stores across the country. The FTC claims this practice affected millions of purchases nationwide.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, stated that the company betrayed the trust of American consumers. He said the overcharges imposed financial harm on communities and individuals struggling to make their paychecks last.

The agency filed the complaint in the U.S. District Court for the Middle District of Tennessee. This is the home state of Dollar General's headquarters. The suit seeks a permanent injunction and monetary relief for affected customers.

Dollar General responded that it aims for 100% accuracy between shelf and register prices in every store. The company stated it learned of the FTC investigation in early February. It said it worked in good faith to resolve the matter without litigation.

The retailer argued that FTC staff demanded a monetary amount that was orders of magnitude larger than any realistic assessment of the pricing discrepancies. Dollar General said it proposed a more reasonable method for calculating potential settlement ranges.

The suit notes that the company faced thousands of consumer complaints about failed price honors. Dollar General stated it will defend the litigation vigorously while respecting the role of the FTC and state representatives in protecting consumers.