Dollar General: Federal and State Regulators File Price Suit

The Federal Trade Commission and 20 states filed a lawsuit on Monday against Dollar General. The group accuses the discount retailer of charging customers more than the prices listed on shelves, tags, and advertisements. Dollar General shares fell approximately 4% following the announcement.

The complaint states that thousands of stores engaged in this practice with inadequate safeguards. It alleges the retailer extracted millions of dollars in unlawful overcharges from vulnerable shoppers. The filing further claims the company received tens of thousands of consumer complaints regarding price discrepancies but failed to implement policies to correct the issue.

Twenty states joined the FTC in the suit. These include 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, 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.

Dollar General did not immediately respond to a request for comment. The timing of the suit coincides with midterm elections scheduled for next week. Officials from both political parties are seeking to demonstrate their efforts to protect consumers from rising food and gas costs.

The case will proceed through federal and state court systems. No trial date has been set. The regulatory agencies seek to recover funds from the overcharged shoppers and establish new compliance measures for the retailer.