The Federal Trade Commission has sued Dollar General alongside 20 US states, accusing the discount retailer of charging customers more than the prices displayed on shelves, labels and advertisements.
Dollar General shares fell by about 4% after the FTC announced the lawsuit. The complaint alleges that thousands of the company’s stores imposed millions of dollars in unlawful overcharges, particularly affecting vulnerable shoppers.
Regulators claim the retailer failed to put adequate safeguards in place to prevent customers being charged more at the till than the advertised or marked price.
The FTC also alleges that Dollar General received “tens of thousands” of complaints from consumers about higher charges but did not introduce policies to address the issue.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, 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 states involved are 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 a request for comment.
The case comes as shoppers seek discounts while facing elevated food and petrol prices. Officials across the political spectrum are also seeking to demonstrate efforts to protect consumers from high costs ahead of next week’s midterm elections.
