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Dollar General Targeted by the FTC, 20 States for Deceptive Pricing Scheme

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Dollar General Targeted by the FTC, 20 States for Deceptive Pricing Scheme

Dollar General hasn’t lived up to its name, and has in fact bamboozled consumers out of many of their hard-earned dollars, according to a new complaint from the Federal Trade Commission.

As of this week, the national discount retailer faces a lawsuit from the FTC and 20 states across the nation that allege that it engaged in a long-term deceptive pricing scheme. Dollar General Corporation routinely charged shoppers more at the register than the prices it displayed on its shelves and price tags and in its ads, resulting in millions of dollars of overcharges, the complaint said.

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Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin cosigned the federal government’s allegations.

“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, director of the FTC’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.”

Dollar General, with over 21,000 stores across the country, has operated for nearly a century on the premise of offering lower prices than larger discount stores and big-box retailers. It has also invested heavily in same-day delivery services in recent years, allowing it to compete with e-commerce giants like Amazon in rural or underserved communities without plentiful access to retail.


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