Bargain shoppers at Dollar General allegedly paid more than they expected at checkout because of what the Federal Trade Commission (FTC) called deceptive pricing practices.
In response, the agency has sued the Tennessee-based retailer over what it says was a long-running problem the company knew about.
Here's what to know
In a press release, the FTC said the pattern was serious enough to warrant a federal lawsuit in Middle Tennessee, with 20 states joining the case. The complaint accused Dollar General of repeatedly collecting more at checkout than the prices shoppers saw in stores and ads.
The agency alleged Dollar General had "extensive corporate knowledge" of the pricing problem but did not correct it.
"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," declared Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, in the release.
The case includes Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.
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More background
The AP noted the case arrives as many consumers are already upset about the cost of everyday goods. The outlet also noted growing skepticism toward newer pricing methods at large retailers and restaurant chains, including the use of artificial intelligence tools to help set prices.
These weren't just a few incidents, either. The complaint contended the scheme involves thousands of stores taking millions of dollars in overcharges from customers, as the release noted. It also said that resulted in "tens of thousands of complaints" from consumers nationwide.
When AP asked for comment, Dollar General did not immediately respond.
What's being done?
Multistate participation signals that regulators see this as a broad consumer-protection issue, not a one-store dispute. In the release, the states and FTC claimed that Dollar General's actions "violate the FTC Act, the Gramm-Leach-Bliley Act and state laws."
The Commission authorized the complaint by a 2-0 vote. Now, the company could face real consequences for what the FTC said constitutes years of bad behavior.
"The FTC's action underscores the agency's commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans," Mufarrige declared in the release.
Where can I learn more?
Dollar General isn't the only retailer facing questions about whether shelf prices match what shoppers pay at checkout.
• In Ohio, inspectors found pricing errors were frequent at Kroger stores and usually favored the retailer.
• At Walmart, some digital shelf tags didn't match the unit prices shoppers saw at checkout.
• In Washington, a proposed Shoppers' Bill of Rights would target surge pricing and shifting tags.
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