FTC and States Target Dollar General Pricing

The Federal Trade Commission and 20 state attorneys general filed a lawsuit against Dollar General on Monday. The legal action alleges the discount retailer consistently charged customers more than the prices listed on shelves, price tags, and advertisements.

The complaint states that thousands of stores engaged in this practice, extracting millions of dollars in unlawful overcharges. It claims the company lacked sufficient safeguards to stop the discrepancies. The agency also notes that Dollar General received tens of thousands of consumer complaints regarding higher charges but failed to implement policies to fix the issue.

Dollar General shares fell approximately 4% following the announcement. The states joining the suit are 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, said the retailer betrayed the trust of millions of consumers. He added that the company imposed financial harm on communities and shoppers already struggling to stretch their paychecks.

Dollar General did not immediately respond to a request for comment. The lawsuit arrives as shoppers seek discounts amid elevated food and gas prices. Officials across the political spectrum are also using the case to demonstrate consumer protection efforts ahead of next week's midterm elections.