“Despite being made aware of the problem,” the FTC says, “Dollar General has failed to implement policies and practices to adequately address the problem.”
The Federal Trade Commission and a coalition of at least 20 states have filed a lawsuit accusing the Dollar General Corporation of engaging in deceptive trade practices by charging customers more at the register than prices displayed on products, shelves, and stickers.
The lawsuit claims that Dollar General has long been aware of the problem but has refused, repeatedly, to take any meaningful corrective action.
“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,” said Christopher Mufarrige, the director of the Federal Trade Commission’s Bureau of Consumer Protection. “The FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans.”
In a press release, the FTC said that the Dollar General Corporation operates more than 21,000 stores across the United States, with many located in rural, low-income, and otherwise-underserved communities.
“Thousands of Dollar General stores have taken advantage of vulnerable shoppers by extracting millions of dollars in unlawful overcharges with insufficient safeguards to prevent the practice,” the FTC said in a statement. “Dollar General received tens of thousands of complaints from consumers across the country who say the company did not honor the advertised price, demonstrating widespread consumer harm and confirming that customers nationwide have been charged more than the advertised price.”
“Despite being made aware of the problem,” the FTC says, “Dollar General has failed to implement policies and practices to adequately address the problem.”
Michigan Attorney General Dana Nessel, a Democrat and co-plaintiff in the complaint, said that Dollar General’s practices likely violate provisions of both state and federal law.
“Consumers everywhere deserve to be treated with respect in any store where they choose to spend their money,” Nessel said in a press release. “That is the guiding principle behind the Michigan Consumer Protection Act, and many other state and federal laws. I appreciate the efforts of the FTC and other states on this far-reaching investigation, and together we can put an end to these deceptive practices and restore some truth in pricing across the country.”
The Federal Trade Commission, for its part, accuses the Dollar General Corporation of violations of “the FTC Act and the Gramm-Leach-Bliley Act.”
The lawsuit was filed earlier this week in U.S. District Court for the Middle District of Tennessee.
Sources
AG Nessel Sues Dollar General for Charging Consumers More Than Advertised for Many Products
Attorney General Jeff Jackson Sues Dollar General for Illegally Overcharging Customers
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