FTC and 20 states file suit against Dollar General over price discrepancies

The Federal Trade Commission joined 20 states on Monday to sue Dollar General for charging customers more than posted prices.

The lawsuit claims the company lacked adequate safeguards to stop the practice. It alleges that thousands of locations exploited vulnerable shoppers to extract millions of dollars in unlawful overcharges.

The complaint states that Dollar General received tens of thousands of consumer complaints regarding these price mismatches. The agency argues the retailer failed to implement policies to fix the issue after receiving that feedback.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the company betrayed the trust of millions of consumers. He noted that the practice imposed financial harm on communities already struggling with rising costs.

Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin joined the federal suit. Dollar General shares fell approximately 4% following the announcement.

Dollar General did not immediately respond to a request for comment. The filing arrives as voters prepare for midterm elections next week while facing high food and gas prices.

Officials from both parties are using the case to demonstrate their focus on protecting consumers from elevated costs. The suit seeks to address the gap between shelf tags, advertisements and register totals.