Dollar General allegedly charged shoppers more than shelf prices for years. Now, the past is demanding answers: ‘defend this litigation vigorously’

Dollar General is under fire after it has been accused of charging customers more at checkout than the prices advertised on its shelves, with federal regulators alleging the practice led to millions of dollars in unlawful overcharges, according to CBS News. The Federal Trade Commission (FTC) and 20 states have now sued the discount retailer, claiming the pricing problems allegedly persisted for years and affected shoppers across the country.

The chain operates around 21,000 stores nationwide, many of which cater to customers looking for affordable everyday essentials. According to the lawsuit, filed in the U.S. District Court for the Middle District of Tennessee, however, shoppers at thousands of locations were sometimes allegedly charged more at the register than the prices displayed on shelves, price tags, and advertisements.

The FTC says the alleged discrepancies hurt consumers who depend on Dollar General’s low prices to manage tight household budgets. In a statement, Christopher Mufarrige, director of the agency’s Bureau of Consumer Protection, accused the retailer of betraying shoppers’ trust and causing financial harm to communities already struggling to make ends meet.

It has apparently been going on for a long time

Dollar General has pushed back against the allegations. It said that “Our goal is 100% accuracy between shelf and register prices in every store,” adding that occasional pricing discrepancies can happen at any retailer. The company also maintains that it has taken steps to improve the accuracy of its prices and resolve the dispute before it reached court.

The lawsuit alleges that customers routinely paid more than advertised, despite the retailer promoting convenience, low prices, and value. The agency also pointed to thousands of consumer complaints about stores allegedly failing to honor advertised prices at checkout. According to the FTC, those complaints suggest that the problem was widespread and that shoppers continued to face discrepancies across the chain.

The lawsuit seeks a permanent injunction to prevent further violations, along with monetary and other relief. Dollar General said it became aware of the FTC’s investigation in early February. According to the company, “FTC staff also demanded a monetary amount that was untethered to — and orders of magnitude larger than — any realistic assessment of amounts attributable to pricing discrepancies.”

Dollar General said it had worked in good faith to settle the matter without litigation and had proposed what it viewed as a more reasonable way to calculate a potential settlement. Those efforts apparently failed to prevent the lawsuit. Although Dollar General said it respects the FTC’s consumer protection role and the states’ responsibilities to their residents, it vowed to “defend this litigation vigorously.”