FTC and 20 states sue Dollar General over alleged checkout overcharging

Dollar General is accused in a new lawsuit from the Federal Trade Commission and 20 states of ringing up shoppers at higher prices than those posted on shelves or promoted in ads, several outlets reported.

Boston 25 News reported that the case was filed Monday in federal court in Tennessee's Middle District. According to Boston 25 News and ABC11, the plaintiffs claim the discount chain did not fix the price gaps even though people within the company widely understood the issue.

Citing the FTC, ABC11 and WSB-TV listed the participating states: Tennessee, Alabama, Mississippi, Louisiana, Arkansas, Oklahoma, Kansas, Nebraska, Iowa, Illinois, Wisconsin, Michigan, Ohio, North Carolina, Florida, New Jersey, Connecticut, Utah, Arizona and California.

The complaint claims overcharging took place at thousands of the chain's locations and affected shoppers it describes as vulnerable, Boston 25 News reported. The outlet said the filing also cites tens of thousands of consumer complaints nationwide about advertised prices going unhonored, and alleges the retailer was aware customers were being hurt.

WSB-TV reported that the plaintiffs argue the alleged conduct breaks state statutes as well as two federal laws, the FTC Act and the Gramm-Leach-Bliley Act.

In a statement, Christopher Mufarrige, who heads the FTC's Bureau of Consumer Protection, said "Dollar General has betrayed the trust of millions of American consumers," according to Boston 25 News. He also described the suit as part of an effort aimed at "lowering costs for consumers by stopping deceptive pricing practices that harm Americans," the outlet reported.

Reports on the company's reaction vary. Boston 25 News and ABC11 said the Associated Press had not yet heard back from Dollar General, whose headquarters is in Goodlettsville, Tennessee, outside Nashville. A later CBS Philadelphia report said the retailer had pledged a vigorous defense against the case.

According to CBS Philadelphia, regulators contend that store prices were labeled incorrectly for years.

None of the allegations has been proven in court.

ABC11 placed the lawsuit in the context of broad public frustration with high prices, as well as concern about newer pricing approaches at restaurants and large retailers, such as those using artificial intelligence.

Compiled by True News from reporting by Boston 25 News, WSB-TV, CBS Philadelphia and ABC11. Each outlet's original story is linked below.

Originally published by True News: https://truenews.bagleyenterprises.net/stories/511