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Retail · Pricing1 min read

Federal regulators say Dollar General overcharged shoppers for years

The FTC and 20 states say Dollar General charged more than the advertised price for years. Here is what shoppers at discount stores should check.

By the Dashline deskSource: Business Insider
Federal regulators say Dollar General overcharged shoppers for years
Photo: The Alaska Landmine, CC BY 2.0

The Federal Trade Commission and 20 states sued Dollar General on Monday. They say the discount chain used deceptive pricing on its shelves, price tags and ads, and charged shoppers more than they expected to pay.

What regulators claim

The FTC said Dollar General has, for years, "repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem." The filings say the company got tens of thousands of complaints from shoppers who did not get an advertised price. Regulators allege the overcharging brought Dollar General millions of dollars.

Who it affects

Dollar General runs more than 21,000 US stores. They typically serve customers in more rural and low-income areas, where a few extra cents on each item can matter.

The suit follows a New York settlement reached less than two weeks earlier. Attorney General Letitia James secured nearly $1.9 million in food and personal items as a civil penalty for overcharging shoppers in the state. New York did not join the FTC's complaint.

What is not known yet

Dollar General did not immediately respond to a request for comment. The material does not say what penalty the FTC wants or how long the case could take. These are allegations, not findings.

The case lands as shoppers worry about fair retail pricing, especially with digital price tags. Walmart, Target and Home Depot have each publicly promised consistent prices online and at the register.

The takeaway

At discount stores, compare your receipt with the shelf price and ask for a correction if they differ.

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