Dollar General faces lawsuit over alleged price mismatches on $1 goods

The Federal Trade Commission and 20 U.S. states have filed a lawsuit against Dollar General, accusing the retailer of deceptive pricing practices and saying it charged shoppers more than the price shown on the shelf.

Dollar stores are a familiar presence across the United States, and many products are sold for just $1. Some items, however, cost more than a dollar while still remaining cheaper than similar products at other retailers.

Dollar General has now come under scrutiny for allegedly failing to honor the prices it advertises. The FTC and state officials announced the case in late October, calling the conduct a long-running pattern of deceptive pricing.

According to the FTC, shoppers were shown one price in the store but found a higher charge at checkout, a practice the agency says has cost consumers millions of dollars over time.

Dollar General sued over pricing claims

“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,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.

The lawsuit includes Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin as co-plaintiffs.

“The FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans,” Mufarrige added.

The complaint says the FTC received tens of thousands of reports from shoppers who said Dollar General did not honor the advertised price of items.

“Despite being made aware of the problem, Dollar General has failed to implement policies and practices to adequately address the problem,” the FTC said.

Earlier in the year, the chain said it had added 2,000 items priced at $1 or less across its stores.

“Our customers can’t afford to make a mistake when shopping. They need the value that our private brands offer, but with the assurance that the products will meet or exceed their quality expectations,” said Angela Martin, vice president of consumer insights and branding.