FTC, 20 states sue Dollar General over shelf price errors

The Federal Trade Commission and 20 states filed a lawsuit against Dollar General on Monday. The complaint alleges the retailer routinely charged customers more than the prices displayed on shelves, tags, and in ads. Dollar General shares fell approximately 4 percent following the announcement.

The complaint states that thousands of stores extracted millions of dollars in unlawful overcharges. It claims the company used insufficient safeguards to prevent these errors. The filing adds that Dollar General received tens of thousands of consumer complaints about price mismatches. The states argue the retailer failed to implement policies to correct the issue.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, addressed the impact on shoppers. "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," Mufarrige said.

The coalition includes Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. These jurisdictions joined the federal agency to pursue the case.

Dollar General did not immediately respond to requests for comment. The timing of the suit coincides with high costs for food and gasoline. Lawmakers from both parties are also using consumer protection efforts to signal their stance ahead of the midterm election next week.