FTC, 20 States Sue Dollar General Over Alleged Pricing Overcharges; Shares Fall 4%

The U.S. Federal Trade Commission and 20 states filed a lawsuit on Monday accusing Dollar General of repeatedly charging shoppers more than advertised prices, even after receiving tens of thousands of consumer complaints. The discount retailer's stock fell more than 4% Monday afternoon. The complaint alleges Dollar General made millions of dollars by failing to honor prices advertised on fliers and shelves at checkout. "Dollar General has, for years, repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem," the FTC and states said in a statement. The lawsuit cites consumer complaints, failed state inspections and undercover FTC shopping. Portions detailing the company's knowledge were largely redacted. California joined Florida, Illinois, Michigan, Ohio, North Carolina, Tennessee and 13 other states. Since 2019, Dollar General has paid $6 million in settlements with six states over inaccurate pricing, according to the complaint. Dollar General did not immediately respond to a request for comment.