FTC and 20 states hammer Dollar General for pocketing millions in hidden price gaps
The lawsuit claims the retailer systematically overcharged customers, causing shares to fall 4% on Monday.
By Maya Shah ·
The Federal Trade Commission and 20 state attorneys general filed a lawsuit against Dollar General on Monday.
The legal action accuses the discount retailer of charging shoppers more than the prices displayed on shelves, tags, and in ads.
Dollar General stock dropped approximately 4% following the announcement.
The complaint states that thousands of stores extracted millions of dollars in unlawful overcharges.
It argues the company lacked sufficient safeguards to prevent these discrepancies.
The filing notes the retailer received tens of thousands of consumer complaints about the issue.
Dollar General has not yet implemented policies to correct the practice, according to the FTC.
The states joining the suit include 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 the company betrayed consumer trust.
He added that the retailer imposed financial harm on communities struggling to make paychecks last.
Dollar General did not immediately respond to a request for comment.
The lawsuit arrives as shoppers seek discounts amid high food and gas costs.
Source: CNBC
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