Dollar General Accused of Widespread Deceptive Pricing in FTC Lawsuit

Dollar General is facing a federal lawsuit from the Federal Trade Commission (FTC) and 20 states, which accuse the discount retailer of routinely charging customers more at the register than the prices displayed on shelves, tags, and advertisements. The complaint, filed in federal court in Tennessee, alleges this practice has occurred for years and has cost consumers millions of dollars.

According to the FTC and the participating states, the pricing discrepancies were not isolated incidents but a widespread issue. Investigators conducted undercover shopping trips and found products scanning at higher prices than indicated. The lawsuit also points to tens of thousands of consumer complaints received by Dollar General regarding prices ringing up higher than advertised, as well as failed state inspections.

The FTC alleges that Dollar General was aware of these discrepancies but failed to implement adequate safeguards to prevent them. The agency contends that this conduct amounts to deceptive pricing, violating federal and state consumer-protection laws. The FTC is seeking monetary relief and other remedies in the case.

Since 2019, Dollar General has reportedly paid $6 million in settlements with six states over inaccurate pricing practices, but the latest lawsuit claims these previous actions did not resolve the problem. The company operates over 21,000 stores nationwide and serves a customer base that relies heavily on advertised prices, including low- and fixed-income shoppers.

The FTC argues that the company shifted the burden of catching pricing errors onto consumers, who may not have the resources or time to scrutinize every item at checkout. The complaint includes redacted sections concerning what Dollar General allegedly knew about its pricing practices, with some details not yet publicly disclosed.