Retail Price Disputes: FTC and 20 states sue Dollar General

The Federal Trade Commission announced on Monday that it joined with 20 states in filing a lawsuit against Dollar General. The core allegation is that the retailer routinely charged customers more than the prices displayed on shelves, tags, and in ads.

The complaint states that thousands of stores engaged in this practice, extracting millions of dollars in unlawful overcharges. It argues the company lacked sufficient safeguards to stop the discrepancies. The FTC further claims Dollar General received tens of thousands of consumer complaints about higher checkout prices but failed to implement policies to fix the issue.

Dollar General shares dropped approximately 4% following the announcement. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the retailer betrayed consumer trust. He noted the financial harm falls on communities struggling to make paychecks last.

The coalition of states 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.

The timing of the suit coincides with shoppers seeking discounts amid elevated food and gas prices. Officials from both parties are using consumer protection actions to demonstrate their efforts ahead of the midterm election next week.