The Federal Trade Commission (FTC) has filed a lawsuit against Dollar General accusing the discount retailer of engaging in long-standing deceptive pricing practices. The complaint alleges that the company charged customers more at the register than the prices displayed on shelves and in advertisements, despite knowing about the discrepancy and failing to take corrective action.

The lawsuit, filed in the U.S. District Court for the Middle District of Tennessee, involves 20 states that joined the FTC in the legal action. These states include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, criticized Dollar General for undermining consumer trust and causing financial harm to communities and individuals already facing economic challenges. He emphasized the impact on consumers struggling to stretch their paychecks amid rising prices.

Dollar General, headquartered in Goodlettsville, Tennessee, near Nashville, did not immediately respond to requests for comment.

The case comes at a time when many Americans are expressing frustration over increasing costs and the pricing strategies used by various retailers and restaurant chains. Some consumers and experts have noted concerns about the use of artificial intelligence tools in setting prices, raising questions about transparency and fairness in retail pricing practices.

The FTC’s action highlights the agency’s focus on protecting consumers from deceptive business practices and ensuring retailers uphold clear and accurate pricing information. The outcome of the lawsuit may have broader implications for pricing standards in the retail sector.