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LANSING — Alongside the Federal Trade Commission (FTC) and 19 other states, Michigan Attorney General Dana Nessel today sued Dollar General Corporation for engaging in long-running deceptive pricing practices by frequently charging customers more at the register than the prices displayed on shelves, price tags and advertisements. The coalition alleges Dollar General has generated millions of dollars by regularly and repeatedly charging more at the register than the prices it advertises.
“Consumers everywhere deserve to be treated with respect in any store where they choose to spend their money,” said Attorney General Nessel. “That is the guiding principle behind the Michigan Consumer Protection Act, and many other state and federal laws. I appreciate the efforts of the FTC and other states on this far-reaching investigation, and together we can put an end to these deceptive practices and restore some truth in pricing across the country.”
Michigan and 19 state partners joined the FTC in filing a complaint (PDF) in the United States District Court for the Middle District of Tennessee, alleging that Dollar General has, for years, repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem.
According to the complaint:
- Thousands of Dollar General stores have taken advantage of vulnerable shoppers by extracting millions of dollars in unlawful overcharges with insufficient safeguards to prevent the practice.
- Dollar General received tens of thousands of complaints from consumers across the country who say the company did not honor the advertised price, demonstrating widespread consumer harm and confirming that customers nationwide have been charged more than the advertised price.
- Dollar General knows that it harms consumers by charging more at the register than the prices it advertises, as reflected by the numerous complaints it has received.
Despite being made aware of the problem, Dollar General has failed to implement policies and practices to adequately address the problem, according to the complaint.
The FTC alleges these practices violate the FTC Act and the Gramm-Leach-Bliley Act. Each state alleges violations of its own laws, with claims being brought on behalf of the People of the State of Michigan under the Michigan Shopping Reform and Modernization Act (commonly known as the Scanner Law) and the Michigan Consumer Protection Act.
Joining Attorney General Nessel and the FTC in this lawsuit are the states of Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
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