FTC and 20 states sue Dollar General over price tag errors

The Federal Trade Commission filed a lawsuit on Monday against Dollar General, joining with 20 states to accuse the retailer of charging customers more than the prices displayed on shelves, price tags, and in advertisements.

The complaint asserts that thousands of Dollar General stores extracted millions of dollars in unlawful overcharges from vulnerable shoppers. It claims the company lacked sufficient safeguards to prevent the practice and had received tens of thousands of consumer complaints regarding higher-than-advertised prices.

Despite the volume of complaints, the filing argues that Dollar General did not implement policies to address the issue. The lawsuit names Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin as co-plaintiffs.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, stated that the retailer betrayed the trust of millions of American consumers. He said the company imposed financial harm on communities and consumers who are already struggling to make their paychecks last.

Dollar General shares fell by approximately 4% following the announcement of the suit. The company did not immediately respond to a request for comment.

The legal action arrives as shoppers seek discounts amid elevated food and gas prices. Officials across the political spectrum are using the case to demonstrate efforts to protect consumers from high costs ahead of next week's midterm election.