Illinois joins multistate lawsuit accusing Dollar General of false price advertising

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Illinois joined a coalition of states and the Federal Trade Commission in suing Dollar General, accusing the discount chain of charging more at the checkout counter than prices advertised online.

The lawsuit alleges the company “generated millions of dollars by regularly and repeatedly charging shoppers more at the register than the prices it advertises,” in violation of both federal and state laws regarding consumer fraud, according to a statement from Illinois Attorney General Kwame Raoul.

“Overcharging for products at a time when many basic necessities have become less affordable harms vulnerable families and consumers,” Raoul said.

Dollar General said it had been made aware of an FTC investigation in February and was negotiating with the agency before the lawsuit.

"Although we respect the FTC’s role in protecting American consumers and the State representatives’ role in protecting the citizens of their respective states, we will defend this litigation vigorously," the company said in a statement. "Our goal is 100% accuracy between shelf and register prices in every store. As with other retailers and despite our policies and procedures, occasional price discrepancies can occur. When that happens, our store teams are instructed, empowered, and expected to make things right for the customer."

In two instances detailed in court documents, Illinois consumers were charged $0.75 to $1.78 more than was advertised online. Examples from other states allege the company charged more than $4 above the listed price and didn’t honor coupons.

“Whatever the register rings up, that will be the price, and we can’t give you [a] discount,” an Illinois Dollar General store manager is alleged to have told a customer upset about the price differences in April 2024, per the lawsuit.

An FTC investigator who went undercover to make purchases at one location found the screens displaying the prices as items were rung up faced only the employee; in other cases, those screens were broken, according to the lawsuit.

Joining Illinois in the lawsuit are the attorneys general of Alabama, Arizona, Arkansas, California, Connecticut, Florida, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.