Dollar General sued for charging more than its shelf tags say

Dollar General shares fell approximately 4% on Monday following a new federal lawsuit. The suit, filed by the Federal Trade Commission alongside 20 state attorneys general, asserts that the retailer routinely charged shoppers more than the prices displayed on shelves and in advertisements.

The complaint describes a pattern of conduct across thousands of stores. It alleges the company lacked sufficient safeguards to prevent these overcharges. According to the filing, the retailer extracted millions of dollars in unlawful fees from customers.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, addressed the impact of these practices. He stated that Dollar General betrayed the trust of millions of American consumers. Mufarrige noted that the company imposed financial harm on communities where residents are struggling to stretch their paychecks.

The legal team argues that the retailer failed to act despite receiving tens of thousands of consumer complaints. The complaint asserts that Dollar General did not implement policies to address the recurring issue of higher register prices compared to advertised costs.

Alabama joins the federal government in this action. The other 19 participating states include 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 lawsuit was filed as voters prepare for midterm elections. Officials from both political parties have cited consumer protection as a priority amid high food and gas prices.