FTC and 20 States Sue Dollar General Over Register Prices That Don't Match Shelf Tags

The Federal Trade Commission and 20 states filed suit against Dollar General on Oct. 27, accusing the retailer of charging customers more at checkout than the prices advertised on shelves, tags, and in advertising. The complaint alleges these discrepancies persisted for years and resulted in millions of dollars in excess charges. The case was filed in the U.S. District Court for the Middle District of Tennessee, where Dollar General is headquartered.

The agency said thousands of Dollar General locations charged prices that differed from what was displayed on shelves and in advertising. Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said in a statement that Dollar General has betrayed the trust of millions of American consumers and inflicted financial harm on communities already stretched to make paychecks last. The FTC also noted the company received thousands of complaints about mismatches between advertised prices and register charges, and said those complaints support the allegations.

Dollar General said it learned about the FTC investigation in early February and disputed the monetary amount agency personnel requested during settlement talks. The company rejected the allegations, saying it works to correct discrepancies when they occur. "Our goal is to achieve 100% accuracy between shelf and register prices in all our stores," the company said. It added that internal procedures can still produce occasional errors, that employees are instructed and authorized to resolve such situations with customers, and that it has improved price verification processes in recent years.

The company also said it respects the FTC's role in protecting consumers and the role of state representatives in protecting citizens of their states, and that it will defend the litigation vigorously. The FTC and the 20 states are seeking a permanent injunction, monetary compensation, and other relief. Dollar General operates approximately 21,000 stores nationwide.

The complaint was filed in the U.S. District Court for the Middle District of Tennessee. The FTC and states are asking for a permanent injunction, consumer compensation, and additional remedial measures. Dollar General has not yet filed a response to the complaint.

Pricing transparency has also drawn scrutiny elsewhere. Groundwork Collaborative, a nonprofit economic policy organization, tested the Instacart grocery shopping platform and reported that a single test showed different prices for the same product at the same store at the same time.