Dollar General overcharged people at checkout for years, FTC says

The Federal Trade Commission and 20 states on Monday sued Dollar General, accusing the budget retailer of charging customers more for products than it advertised.

The chain, which operates 21,000 stores nationwide, allegedly mislabeled prices for years, "extracting millions of dollars in unlawful overcharges," the FTC alleged.

"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," Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said in a statement. 

The FTC added that American consumers depend on Dollar General's advertised low prices to make ends meet on tight budgets, while prices that don't reflect advertised deals make it impossible for them to manage household finances.

The agency filed its complaint in the U.S. District Court for the Middle District of Tennessee, Dollar General's home state. 

Dollar General didn't immediately reply to a request for comment.

"Inaccurate pricing"

According to the suit, thousands of Dollar General stores unlawfully overcharged shoppers.

Dollar General "has for years engaged in deceptive conduct that harms the very consumers it claims to serve," the FTC and states allege in the suit. "Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements. This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country."

The company also faced thousands of consumer complaints claiming it failed to honor advertised prices at checkout, a sign Dollar General knowingly harmed customers, according to the FTC. 

The suit seeks a permanent injunction, along with monetary and other relief.