FTC and 20 states sue Dollar General over alleged deceptive pricing

The Federal Trade Commission and 20 states filed a lawsuit on Monday against Dollar General, accusing the retailer of deceptive pricing practices that overcharge customers. UPI and CNBC reported that the complaint alleges the company extracts millions of dollars in illegal overcharges from shoppers. [1][2]

The lawsuit was submitted to the U.S. District Court for the Middle District of Tennessee in Nashville, according to UPI and the New York Post. The 20 states joining the federal agency include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin. [1][4]

The complaint states that Dollar General failed to resolve pricing issues despite having extensive corporate knowledge of the problem, according to the New York Post. Christopher Mufarrige, director of the FTC Bureau of Consumer Protection, stated that the company betrayed the trust of millions of American consumers who are struggling to stretch their paychecks. [1][4]

CNBC reported that shares of Dollar General fell approximately 4 percent after the agency announced the lawsuit. Dollar General is headquartered in Goodlettsville, Tennessee, just outside of Nashville. As of January 2024, the chain operated 20,388 stores across the contiguous United States and Mexico. [2][4][10]