FTC and 20 States Sue Dollar General for Charging More Than Listed Prices

The Federal Trade Commission filed a lawsuit on Monday against Dollar General, joining 20 states to allege the retailer routinely charged customers more than the prices displayed 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, leaving shoppers with insufficient safeguards to prevent overcharges. It notes that the company received tens of thousands of consumer complaints about discrepancies between advertised and final prices. The lawsuit argues that Dollar General failed to implement policies to address these recurring issues.

Louisiana is among the 20 states participating in the suit. The other plaintiffs include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the retailer betrayed the trust of millions of consumers. He stated that the company imposed financial harm on communities and individuals already struggling with high costs.

Dollar General did not immediately respond to a request for comment regarding the filing. The legal action occurs as shoppers seek discounts amid elevated food and gas prices. Officials from both political parties are also using the suit to demonstrate consumer protection efforts ahead of next week's midterm election.