FTC and 20 states sue Dollar General over shelf price mismatches

Dollar General shares declined by approximately 4% on Monday following the announcement of a federal lawsuit. The Federal Trade Commission and 20 state attorneys general filed the complaint against the discount retailer on Monday.

The legal action accuses the company of charging customers more than the prices listed on physical tags, shelf displays, and advertisements. The complaint states that thousands of locations engaged in this practice, resulting in millions of dollars in unlawful overcharges. Regulators claimed the retailer failed to establish adequate safeguards to stop the billing errors.

Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, described the conduct as a betrayal of consumer trust. He noted that the overcharges impose financial harm on communities where residents are already struggling to stretch their paychecks.

The suit cites tens of thousands of consumer complaints regarding price discrepancies. It argues that Dollar General failed to implement specific policies to address the recurring issue despite the volume of reports. 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.

Dollar General did not immediately respond to requests for comment regarding the new filing. The timing of the lawsuit coincides with rising food and fuel costs that are prompting shoppers to seek out discounts. Officials from both parties also use consumer protection cases to signal their stance on economic pressures ahead of next week’s midterm election.