Dollar General Faces Federal Suit Over Shelf Price Mismatches

The Federal Trade Commission and 20 state attorneys general filed a lawsuit against Dollar General on Monday. The coalition alleges the discount retailer charged shoppers more than the prices displayed on shelves, tags, and ads.

The complaint asserts that thousands of stores used insufficient safeguards to prevent these overcharges. It claims the practice extracted millions of dollars from vulnerable consumers.

According to the filing, Dollar General received tens of thousands of complaints regarding higher-than-advertised prices. The plaintiffs argue the company failed to implement policies to correct the issue.

FTC Bureau of Consumer Protection Director Christopher Mufarrige addressed the suit in a statement. He said, "Dollar General has betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last."

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 agency in the action.

Dollar General shares fell approximately 4% following the announcement. The company did not immediately respond to a request for comment. The timing coincides with rising food and gas costs and the midterm election scheduled for next week.