The Federal Trade Commission (FTC) and 20 states filed a lawsuit on Monday against Dollar General, alleging the discount retailer routinely charged customers more than the prices displayed on shelves, price tags, and in advertisements.
The complaint, filed in federal court, claims Dollar General’s practices resulted in millions of dollars in unlawful overcharges and that the company failed to address tens of thousands of consumer complaints about the issue. Shares of Dollar General dropped 4% following the announcement.
FTC and state allegations
The FTC, joined by states including Alabama, California, Florida, Illinois, and Texas, accused Dollar General of deceptive pricing that disproportionately affected low-income and rural communities, where the retailer operates over 21,000 stores. The complaint states that Dollar General received extensive complaints but did not implement sufficient safeguards to prevent overcharging.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated: “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.”
Dollar General’s response
Dollar General did not immediately respond to requests for comment on the lawsuit. The company has not publicly addressed the allegations as of publication.
Regulatory and political context
The lawsuit follows heightened scrutiny of retail pricing practices amid elevated food and gas prices, with consumers increasingly seeking discounts. The action also aligns with broader efforts by regulators and lawmakers to address consumer protection concerns ahead of midterm elections.
The FTC’s complaint comes less than two weeks after New York Attorney General Letitia James reached a $1.9 million settlement with retailers over similar overcharging allegations. New York did not join the FTC’s lawsuit.
Broader retail pricing trends
The case reflects growing concerns about price transparency in retail, particularly as stores adopt digital price tags. Major retailers like Walmart, Target, and Home Depot have recently pledged to improve pricing consistency between shelves and registers.
The lawsuit seeks monetary penalties and injunctive relief, including changes to Dollar General’s pricing and complaint-handling policies. The case is ongoing, with no court date set as of now.