Background of the Allegations

The legal action, initiated in a federal court in Nashville, stems from a detailed investigation by the Guardian, published in December 2022. The complaint spans 95 pages and asserts that Dollar General has engaged in persistent deceptive pricing practices that adversely affect the very consumers it claims to support.

Details of the Complaint

According to the lawsuit, the chain has charged customers more at checkout than the prices displayed on shelves, in advertisements, and on product labels. This alleged behavior, described as a “staggering” pricing misconduct, has occurred systematically and has impacted millions of transactions nationwide.

FTC’s Findings and Investigations

The FTC’s accusations align with previous findings from the Guardian’s investigation, highlighting that Dollar General stores failed more than 4,300 price-accuracy inspections conducted over three years in 23 states. The legal document emphasizes that the company’s internal policies designed to ensure price accuracy have not been effective in practice.

Employees have reported that due to understaffing, they frequently do not update price labels, contributing to the errors noted in customer transactions.

Undercover investigations by the FTC revealed that multiple instances of overcharging occurred during secret shopper visits to stores in various states, with one instance in Cleveland indicating an overcharge rate of nearly 14% on tested items.

Dollar General’s Response

In response to the lawsuit, Dollar General expressed dismay at the allegations, stating, “The lawsuit filed today… suggests that we have abandoned our mission and willfully disregarded the affordability needs of our customers. Nothing could be further from the truth.”

The company insists that its goal is to achieve 100% accuracy between labeled prices and register charges. Furthermore, Dollar General claims to have cooperated fully with the FTC’s investigation, providing extensive documentation and access to company representatives.

Proposed Settlements and Recent Developments

In a parallel matter, the New York attorney general announced a settlement with Dollar General for $1.875 million due to similar allegations of overcharging customers in the state. The retail chain has indicated its commitment to defending itself vigorously against the FTC’s lawsuit, noting an intent to improve pricing accuracy processes continuously.