The Federal Trade Commission and 20 states have sued Dollar General, alleging that customers routinely paid more at checkout than the prices displayed on shelves, price tags and advertisements.
The lawsuit, filed October 26 in the U.S. District Court for the Middle District of Tennessee, accuses the discount retailer of failing to correct pricing problems despite knowing about them. Dollar General disputes the regulators’ approach and says it intends to vigorously defend the case.
In its announcement, the FTC said the alleged overcharges cost shoppers millions of dollars. The agency said Dollar General received tens of thousands of consumer complaints about not honoring advertised prices.
These are allegations, not a court finding. The FTC said the court will decide the case.
Dollar General said in an SEC filing that it had cooperated with the investigation since early February and tried to settle the matter before the lawsuit was filed. The company said the FTC’s demands for financial redress relied on assumptions and methods that it believes are unsupported and materially overstate any alleged consumer harm.
The company said the plaintiffs seek a court order, monetary judgment, civil penalties and other relief. It warned that defending the case could involve significant costs and that an unsuccessful defense could materially affect its financial statements.
New Jersey and Connecticut are among the 20 states that joined the FTC lawsuit.
The FTC said its commission voted 2-0 to authorize the complaint. The agency and states allege violations of the FTC Act, the Gramm-Leach-Bliley Act and state laws.
File photo: Dollar General store exterior. Credit: Dollar General Newsroom.
JBizNews Desk | Washington
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