FTC, 20 states sue Dollar General over alleged deceptive pricing

By Tom Whitfield

The Federal Trade Commission and 20 U.S. states filed suit against Dollar General on Monday over alleged deceptive pricing after the chain received more than 29,000 complaints that register prices exceeded advertised prices.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, issued a Monday statement. He said: “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.”

The FTC alleges that Dollar General often charged more than the prices in circulars, on digital channels and in in-store displays. The complaints covered price honoring from January 2023 through the end of March. Retail Dive reported that Dollar General did not immediately respond to its request for comment on the allegations.

What did investigators find?

The FTC’s complaint contains partially redacted internal Dollar General emails and company communications, along with consumer complaints and details of an undercover FTC investigation. FTC investigators made purchases from January through April at stores in Ohio, Pennsylvania, Missouri and Maryland.

The agency said every purchase produced a register price above the price advertised elsewhere. On Jan. 16, an undercover purchase at an Ohio store produced a different price on 13 of 58 items compared with the product label or shelf listing. The FTC said quick-moving register screens make it difficult for consumers to catch such inconsistencies at the moment.

What did Dollar General allegedly know?

Thousands of consumer complaints and failed pricing inspections had made the alleged inconsistencies known to Dollar General. The FTC said in its Monday press release that Dollar General “has failed to implement policies and practices to adequately address the problem.”

The agency and states alleged violations across three legal frameworks:

• FTC Act
• Gramm-Leach-Bliley Act
• State laws

The FTC’s complaint stated: “Dollar General has for years engaged in deceptive conduct that harms the very consumers it claims to serve.” It added: “Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the price displayed on shelves, price tags, and advertisements.”

The FTC framed the alleged conduct as a policy failure, not only a set of isolated checkout errors.

How does the case contrast with Dollar General’s sales growth?

Retail Dive reported that Dollar General’s second-quarter net sales rose 5.2% year over year to $11.3 billion. It also noted that higher-income shoppers increasingly shop at the chain.

CEO Todd Vasos described the company’s stronghold in rural areas as a core part of the business during an August earnings call. He told analysts: “Our mature store base is a unique competitive advantage that enables us to serve customers in smaller, rural communities across the country.”

The case now reaches beyond isolated checkout disputes. It tests whether Dollar General can reconcile shelf tags, circulars, digital listings and register prices while serving more higher-income shoppers. The FTC and 20 states now place those controls at issue.