Dollar General hit with $10 million lawsuit over shelf price errors

The Federal Trade Commission filed a lawsuit on Monday, joined by 20 state attorneys general, alleging that Dollar General routinely charged customers more than the prices displayed on shelves, tags, and ads.

The complaint claims the retailer extracted millions of dollars in unlawful overcharges while lacking sufficient safeguards to stop the practice. It further states that the company received tens of thousands of consumer complaints about these discrepancies but did not implement policies to resolve them.

Dollar General shares fell approximately 4% following the announcement.

The suit targets stores across the country where shoppers reported being charged higher amounts at the register than were advertised. The legal filing describes the retailer as taking advantage of vulnerable shoppers who are trying to manage their finances.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the company betrayed the trust of millions of American consumers. He stated that Dollar General imposed financial harm on communities and individuals who are already struggling to make their paychecks last.

Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin joined the federal agency in the action.

Dollar General did not immediately respond to a request for comment. The lawsuit arrives as shoppers seek discounts amid elevated food and gas prices. Officials from various political backgrounds are also using the case to demonstrate efforts to protect consumers ahead of the midterm election next week.