Dollar General accused of collecting millions in unlisted price gaps

The Federal Trade Commission alleges that Dollar General stores extracted millions of dollars in unlawful overcharges from customers. The lawsuit, filed on Monday, contends that the retailer routinely charged prices higher than those displayed on shelves, price tags, and advertisements.

Dollar General stock fell by approximately 4 percent following the announcement. The complaint asserts that the company failed to implement safeguards to prevent the practice. It further claims the retailer received tens of thousands of consumer complaints regarding these price discrepancies but did not act on them.

Twenty state attorneys general joined the federal agency in the suit. The participating states 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, issued a statement addressing the impact on households. "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," he said.

Dollar General did not immediately respond to a request for comment. The filing arrives as shoppers seek lower costs amid elevated food and gas prices. Consumer protection officials are also positioning these enforcement actions ahead of the midterm election scheduled for next week.