Dollar General is ready to pay you back if you’ve ever been overcharged in one of its stores – and even if you haven’t.
After a slew of lawsuits in recent years accusing the retailer of regularly mispricing items at the shelf and charging customers more than the listed price, Dollar General has agreed to a $15 million settlement to compensate affected shoppers, and to put systems in place to ensure it doesn’t happen again.
The preliminary settlement agreement was submitted last week to a New Jersey state judge, who will have to approve it – the first step in a long, multi-step process before anyone sees their share of the money.
Shopper Jennifer Braun sued Dollar General earlier this year. Whether due to outdated shelf tags that were not changed, or deliberate deception, she alleged that Dollar General “engages in a pattern or practice of charging its consumers more at the register when they check out than the price advertised on the store shelves.” Her complaints echoed those of several other shoppers in other states who also sued. Several of those cases will be consolidated into this single, nationwide proposed class action settlement.
Under the terms of the agreement, Dollar General will set aside $8.5 million to reimburse any shoppers affected by pricing discrepancies at any time between October 10, 2016 and the present day. If the judge grants preliminary approval at a hearing next week, shoppers will be notified as to how they can claim their share.
The good news is that anyone who submits a claim is eligible for a cash refund of at least $10 per overcharge, or a total of at least $20 per household – and even more, if the total of actual overcharges is higher. The bad news is you have to provide proof that you were overcharged. Claims will have to be accompanied either by a documented complaint made at the time of the overcharge, or a receipt and photo of the shelf tag showing the price discrepancy.
Curiously, the agreement says claims can be filed by anyone “who paid more or less for merchandise than the advertised price,” which means if there was a pricing discrepancy in your favor, you can still submit a claim and get an additional $10 refund.
But “shoppers rarely preserve receipts for low-dollar purchases over multiple years, let alone photographs of shelf pricing at the time of sale,” the plaintiffs’ attorneys acknowledge. So there’s a consolation prize.
The settlement agreement calls for all Dollar General shoppers to be given a coupon for $3 off a purchase of $10 or more, valid during a two-day period to be determined. The coupon will automatically appear in the myDG account of anyone who’s already signed up, while others can fill out a form to receive it. No proof of having been overcharged will be required.
“Detailed research by plaintiffs’ experts into the alleged documented overcharges indicated an average overcharge of $0.27,” the agreement notes. So a $10 payment for a single overcharge is excessively fair, it states, and even a $3 coupon is more than adequate as compensation to the average affected shopper.
An additional $6.5 million will be set aside to help prevent similar problems from occurring again. Under the terms of the agreement, Dollar General will use the money for “dedicated store labor to help prevent price discrepancies, third-party pricing audits, and the employment of a full-time employee” who will be responsible for tracking and issuing reports about any pricing issues, once every two months, for the next two years.
In agreeing to the settlement, Dollar General points out that it “is not an admission of wrongdoing, fault, liability, or damage of any kind,” and that they “vigorously dispute the claims alleged in the litigation and are entering into this settlement to avoid further burdensome and costly litigation.”
In response to some of the earlier lawsuits, Dollar General argued that it is “virtually impossible for a retailer to have 100% accurate shelf-pricing all of the time – some error is inevitable.” But it already agreed in 2023 to pay $1 million in fines and penalties to the state of Ohio, and to “provide sufficient coverage for employees to update shelf tags” when prices change, and keep detailed records to prove that the work is being done. The state of Missouri filed its own complaint against the retailer earlier that same year. The outcome of that case is still pending.
The attorneys general of Ohio and Missouri were blunt in arguing their respective cases. “This seems like a company trying to make an extra buck and hoping no one will notice,” Ohio’s Attorney General said. “My office will always pursue those who attempt to rip off Missouri consumers,” Missouri’s Attorney General said. “Prices are at an all-time high; the last thing Missourians need is to feel the brunt of Dollar General’s scheme.”
This latest settlement agreement aims to resolve pricing disputes at Dollar General for good. If you’ve kept very good records over the years, you can earn some extra cash once claim forms are approved. If you haven’t – then now might be a good time to start.
Image source: Dollar General
