FTC and 20 states sue Dollar General over alleged price gouging

The Federal Trade Commission and 20 states have sued Dollar General for allegedly overcharging customers at the register, Supermarket News, Grocery Dive, The Guardian, The Independent, 6abc Philadelphia, and Fox Business all reported. The agency and state attorneys general allege that the discount retailer routinely charges consumers higher prices at checkout than those displayed on shelf tags and in advertisements. [1][2][3][4][5][6]

According to Grocery Dive and Supermarket News, the legal action rests on consumer complaints, failed state inspections, and findings from undercover FTC shoppers. Grocery Dive reported that the complaint contains internal Dollar General emails and company communications. Christopher Mufarrige, director of the FTC Bureau of Consumer Protection, stated that the retailer betrayed the trust of millions of consumers and imposed significant financial harm on communities. [1][2]

The joint legal action follows an investigation by the New York attorney general that established the retailer regularly overcharged store customers, Supermarket News reported. As a result of that earlier investigation, Dollar General must donate $1.875 million worth of food and personal items to Foodlink, a nonprofit dedicated to ending hunger and building healthier communities in Rochester, New York. [1]

Dollar General operates 20,388 stores across the contiguous United States and Mexico as of January 2024. The business began in October 1939 as a wholesale dry goods company in Scottsville, Kentucky, founded by James Luther Turner and Cal Turner Sr. before transitioning into direct retail operations. [8][9]