FTC and 20 States Seek Refunds from Dollar General Over Price Discrepancies

Retailers often face scrutiny over the gap between advertised prices and final register totals. On Monday, the Federal Trade Commission and 20 state governments filed a lawsuit against Dollar General, alleging the company systematically charged customers more than the prices displayed on shelves, tags, and in ads.

Dollar General shares fell approximately 4 percent following the announcement. The complaint describes the practice as a way to extract millions of dollars from shoppers who relied on the lower, visible prices.

The legal filing claims that thousands of Dollar General locations lacked sufficient safeguards to prevent these overcharges. It further asserts that the company received tens of thousands of consumer complaints regarding the price gaps but failed to implement policies to correct the issue.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, criticized the chain in a statement. He said the retailer betrayed the trust of millions of consumers and caused financial harm to communities struggling to stretch their paychecks.

Twenty states joined the federal agency in the suit. These include 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 did not immediately respond to requests for comment. The lawsuit arrives as shoppers seek savings amid high food and fuel costs, and as officials prepare for midterm elections scheduled for next week.