Dollar General faces lawsuit over millions in checkout overcharges

The Federal Trade Commission and 20 state governments filed a lawsuit on Monday against Dollar General, alleging that the budget retailer systematically charged customers more at the register than the prices displayed on shelves and advertisements.

The complaint states that the chain, which operates 21,000 stores nationwide, engaged in deceptive conduct for years. According to the filing, this pattern of inaccurate pricing affected millions of purchases across the country, extracting millions of dollars in unlawful overcharges from shoppers.

The suit identifies the company's failure to honor advertised low prices as a primary burden on consumers who rely on those figures to manage tight household budgets. The regulators noted that the company received thousands of consumer complaints claiming it did not match shelf prices at checkout, which they argued showed the retailer knowingly harmed customers.

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

Dollar General responded by stating its goal is 100% accuracy between shelf and register prices in every store. The company said it became aware of the FTC investigation in early February and worked in good faith to resolve the matter without litigation. It noted that its staff proposed a more reasonable method for calculating potential settlement ranges.

The retailer argued that the monetary amount demanded by FTC staff was orders of magnitude larger than any realistic assessment of amounts attributable to pricing discrepancies. The company stated it will defend the litigation vigorously while maintaining its commitment to continuous improvement in price-accuracy processes.

The complaint was filed in the U.S. District Court for the Middle District of Tennessee, the home state of Dollar General. The FTC and the states are seeking a permanent injunction, along with monetary and other relief to remedy the alleged overcharges.