Dollar General faces $10 million suit from FTC and 20 states

Dollar General shares fell approximately 4% on Monday after the Federal Trade Commission announced a new lawsuit. The agency joined 20 states in accusing the retailer of charging customers more than the prices displayed on shelves, tags, and in ads. The complaint seeks to recover millions of dollars in alleged unlawful overcharges.

The FTC argues that thousands of stores extracted these funds from vulnerable shoppers without sufficient safeguards. The complaint states that the company received tens of thousands of consumer complaints regarding higher-than-advertised prices. Despite this volume of feedback, the regulators say Dollar General did not implement policies to stop the practice.

Twenty states joined the federal suit. They include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. The legal action targets the gap between the scanned price and the listed price at the register.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, addressed the financial impact on buyers. 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." The agency contends that the retailer took advantage of shoppers seeking discounts.

Dollar General did not immediately respond to a request for comment. The lawsuit arrives as shoppers navigate elevated food and gas prices. Lawmakers across the political spectrum are using the case to demonstrate efforts to protect consumers before next week's midterm election.