Dollar General has agreed to pay more than $800,000 for alleged violations of overcharging customers, according to the Wisconsin Department of Agriculture, Trade, and Consumer Protection (DATCP).
For many Milwaukeeans, Dollar General is a matter of convenience.
"I go to Dollar General almost every day since it's right next door to the building. It's real convenient," frequent Dollar General shopper, Felicia Shoates, said.
It's a cheaper option, typically in low-income areas across our state. But recently, several customers said they noticed changes at some Dollar Generals.
"I'm kind of frugal in a way, I make my dollar holler, and their prices are always different," customer Vanessa Dodd said.
"The price on the shelf is not the same price that you're being charged at the register. Isn't that illegal?" Shoates asked.
It is. Court documents show that between January 30 and February 10 of this year, investigators found more than 600 items in Dollar Generals across the state cost more at check out than what was posted on shelves.
"On average, these products scanned at a 17 percent higher cost than the stated price," Michelle Reinen said.
Reinen's with the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP).
We know inspectors found violations at Dollar Generals in Appleton, Green Bay, Kenosha, Madison, Menasha, Milwaukee, Reedsburg, and South Milwaukee. Early Monday, TMJ4 asked for specific locations. Monday afternoon, DATCP told us we needed to file an open records request for this information, despite the department putting out the press release.
"I think it's wrong, but a lot of people aren't paying attention," Dodd admitted.
"It don't make me feel good at all cause I've been spending my money in here every day," Shoates said.
On top of overcharging customers, state investigators also found 45 stores failed to display a sign explaining a purchaser's right to receive a refund. Meaning, if you paid a higher price than what was posted on the shelf, you can be refunded.
"Merchants are legally required to inform consumers of this law and they do that by posting a sign in a conspicuous manner. However, when DATCP and the inspectors went out to do these inspections, Dollar General stores were missing this required sign," Reinen explained.
DATCP and Dollar General agreed to a settlement in which the discount retailer will pay $850,006.11 in civil forfeitures, surcharges, and fees. As part of the agreement, Dollar General does not admit to any violation of Wisconsin law.
This is similar to another settlement reached with Dollar General in 2018 when the company agreed to pay $10,586.50 for the same type of alleged violations.
A statement sent to TMJ4, from Dollar General, said:
Dollar General is committed to providing customers with accurate prices on items purchased in our stores, and we are disappointed any time we fail to deliver on this commitment. When a pricing discrepancy is identified, our store teams are empowered to correct the matter on the spot for our customers. We have appreciated the constructive approach to resolving this matter with the Wisconsin Department of Agriculture, Trade and Consumer Protection.
None of the money Dollar General is paying back to the state will go to customers.
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