Wisconsin Department of Justice Sues Dollar General for Alleged Deceptive Pricing Practices
Dollar General has generated millions of dollars by regularly and repeatedly charging more at the register than the prices it advertises, the FTC and states allege
MADISON, Wis. — The Wisconsin Department of Justice (DOJ), along with the Federal Trade Commission (FTC) and 19 other states, is suing Dollar General Corporation, alleging that it is engaging in long-running deceptive pricing practices by routinely charging customers more at the register than the prices displayed on shelves, price tags, and advertisements, costing Wisconsin and other consumers millions of dollars.
“The prices that folks see displayed when they’re shopping should be the same as the prices they’re charged when they check out,” said AG Kaul. “If the prices charged in the checkout aisle are higher than the prices on the shelves, there should be accountability.”
“Wisconsin takes price accuracy seriously,” said Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) Secretary Randy Romanski. “The DATCP Bureau of Weights and Measures conducts hundreds of thousands of inspections each year to protect Wisconsin consumers because consumers should be able to trust that the prices advertised to them are accurate as it is among the most basic and essential protections consumers have.”
Wisconsin DOJ and a bipartisan coalition of states joined the FTC in filing a complaint, alleging that Dollar General has, for years, repeatedly mislabeled prices, overcharged consumers and failed to correct the alleged issues despite extensive corporate knowledge of the problem.
According to the complaint:
- Thousands of Dollar General stores have allegedly 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 consumer complaints stating that the company did not honor the advertised price, the complaint alleges. Dollar General knows that it harms consumers by charging more at the register than the prices it advertises, the complaint alleges.
The complaint further alleges that despite being made aware of the problem, Dollar General has failed to implement policies and practices to adequately address it.
The FTC alleges these practices violate the FTC Act and the Gramm-Leach-Bliley Act, and Wisconsin alleges these practices violate Wisconsin consumer protection and weights and measures laws.
Cases like this often rely upon the price verifications inspections conducted by DATCP Weights and Measures inspectors, municipal inspectors, and consumer complaints filed with DATCP. To file a weights and measures complaint, visit datcp.wi.gov, send an email to DATCPWeightsAndMeasures@wisconsin.gov or call (608) 224-4942.
The states joining Wisconsin in the FTC lawsuit include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, and Utah.
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
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