20 states join FTC lawsuit over Dollar General checkout prices

The Federal Trade Commission filed a lawsuit against Dollar General on Monday, accusing the discount chain of charging customers higher prices at checkout than those displayed on shelves and in advertisements.

The complaint, filed in the U.S. District Court for the Middle District of Tennessee, describes these actions as long-standing deceptive pricing practices. Twenty states joined the federal suit, including Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.

Dollar General, which is headquartered in Goodlettsville, Tennessee, near Nashville, faces allegations that it failed to fix the discrepancy despite having broad corporate knowledge of the issue.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that the company betrayed the trust of millions of consumers. He noted that the pricing errors caused significant financial harm to communities and shoppers already struggling to make their money last.

Dollar General has not responded to requests for comment from The Associated Press. The lawsuit arrives as American consumers report frustration with rising costs and new pricing methods used by major retailers, including the use of artificial intelligence tools.

The case is now pending in federal court in Tennessee, where the FTC and the 20 participating states will argue their claims against the retailer.