FTC and 19 State Prosecutors Challenge Dollar General's Register Price Mismatches

Dollar General Corporation is the target of a lawsuit filed by Michigan Attorney General Dana Nessel, 18 other state attorneys general, and the Federal Trade Commission. The group announced the action on Monday, accusing the retailer of deceptive pricing practices that generated millions of dollars in profit over several years. The complaint asserts that the company routinely charged customers more at the register than the price advertised on the product.

The legal action was filed in a federal court in middle Tennessee. Nessel stated that consumers deserve respect in any store where they spend their money. The suit includes allegations that thousands of Dollar General stores exploited vulnerable shoppers by extracting unlawful overcharges. The prosecutors claim the company lacked sufficient safeguards to prevent the practice and that the widespread nature of the issue was confirmed by tens of thousands of consumer complaints.

A specific example cited in the complaint involves a consumer shopping in August. She found eggs displayed for $3.25. When she reached the register, a clerk rang up the item for $4.50. The consumer said she refused to pay the higher amount and pointed out that the store had to charge the displayed price. The clerk responded that it was her last day of work and she did not care.

The news release from the Michigan Attorney General's office notes that Dollar General was aware of the problem but failed to implement solutions to address it. The complaint states that the company knew it was harming consumers by charging more than advertised, a fact reflected in the volume of complaints it received. Nessel said she appreciated the efforts of the FTC and other states in the investigation. She added that the group aims to end these deceptive practices and restore truth in pricing across the country.

The lawsuit alleges that Dollar General violated the Michigan Shopping Reform and Modernization Act. The suit was brought by prosecutors from Michigan, Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. The federal complaint and the Michigan Attorney General's office are the primary sources for the details of the case.