FTC and 20 States Sue Dollar General Over Alleged Deceptive Pricing

The Federal Trade Commission (FTC) and attorneys general from 20 states have filed a lawsuit against the bargain chain Dollar General, alleging deceptive pricing practices. The complaint, lodged in the U.S. District Court for the Middle District of Tennessee, claims the company has consistently charged customers more at the register than the prices advertised on shelves and in promotional materials.

The lawsuit asserts that Dollar General has been aware of these discrepancies but has failed to adequately address the issue, betraying consumer trust and causing financial harm, particularly to low-income shoppers.

"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," stated Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

The states joining the FTC in the legal action include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.

Americans have recently expressed growing frustration with rising prices and what they perceive as new pricing strategies employed by various businesses, including the use of artificial intelligence tools by major retailers and restaurant chains. This lawsuit against Dollar General taps into that broader concern about pricing transparency and fairness.

Dollar General, headquartered in Goodlettsville, Tennessee, has not yet responded to a request for comment from the Associated Press.