WASHINGTON — The Federal Trade Commission and 20 states have sued Dollar General, accusing the discount chain of routinely ringing up customers for more than the prices posted on its shelves, price tags and ads, costing shoppers millions of dollars.
Maryland is not one of the states in the lawsuit. But the case matters to shoppers here, because the FTC describes the problem as nationwide and says accurate prices are critical to the low- and fixed-income customers who rely on the chain.
The complaint, filed in federal court in the Middle District of Tennessee, where the company is based, contains allegations that have not been proven. The court will decide the case.
What the FTC alleges
According to the FTC’s announcement, thousands of Dollar General stores have charged customers more at the register than advertised, with too few safeguards to stop it. The company received tens of thousands of consumer complaints that it did not honor advertised prices, the FTC said, showing it knew about the problem. Yet it failed to put adequate policies in place to fix it, the agency alleges.
The FTC and the states say the practices violate the FTC Act, the Gramm-Leach-Bliley Act and state consumer protection laws. The commission voted 2-0 to authorize the lawsuit.
“Dollar General has betrayed the trust of millions of American consumers,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
Dollar General operates more than 21,000 stores nationwide and markets itself as a low-priced alternative to big-box retailers. The FTC’s announcement did not include a response from the company.
Who is suing
The states joining the FTC are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin. Neither Maryland nor neighboring Virginia, Delaware or the District of Columbia is on the list.
Because the FTC is a party, any court order it wins could reach the company’s practices nationwide. Whether Maryland customers would share in any money recovered would depend on how the case is resolved.
If you’re overcharged in Maryland
Shoppers who are charged more than the posted price can ask the store to correct it at the register and keep their receipt. In Maryland, the state Department of Agriculture’s weights and measures program inspects stores’ price scanning, and its past reports have found errors in a share of the items checked. Consumers can also file a complaint with the Maryland Attorney General’s Consumer Protection Division.
Nationally, the FTC takes reports of fraud and bad business practices at ReportFraud.ftc.gov, and more consumer information is at consumer.ftc.gov. The FTC notes it will never demand money, make threats or ask anyone to transfer money.
