Dollar General sued: FTC, 20 states allege shelf-price overcharges
The complaint claims the retailer extracted millions in unlawful overcharges and failed to act on tens of thousands of consumer complaints.
By Chloe Zhao ·
The Federal Trade Commission filed suit against Dollar General on Monday alongside 20 state attorneys general, alleging the retailer charged shoppers more than the prices shown on shelves, tags and in advertisements. Shares of the company fell about 4% after the announcement.
The complaint alleges thousands of Dollar General stores "taken advantage of vulnerable shoppers by extracting millions of dollars in unlawful overcharges with insufficient safeguards to prevent the practice." It further contends the company has received "tens of thousands" of consumer complaints about charging higher than advertised prices without implementing policies to address them.
The states joining the action are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, 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 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 paydays last." Dollar General did not immediately respond to a request for comment.
The filing arrives as shoppers face elevated food and gas prices ahead of the midterm election next week.
Source: CNBC
