FTC, 20 states sue Dollar General

The Federal Trade Commission filed a civil complaint on Monday against Dollar General. The agency joined by 20 state attorneys general in accusing the chain of charging shoppers amounts exceeding posted shelf and advertisement prices.

The lawsuit claims thousands of Dollar General locations extracted millions of dollars through unlawful overcharges. The complaint states the company lacked sufficient safeguards to prevent these errors. Regulators argue Dollar General received tens of thousands of consumer complaints but failed to implement policies to correct the issue.

Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin are the states co-filing the suit. The document asserts the retailer took advantage of vulnerable shoppers with inconsistent pricing practices.

Christopher Mufarrige, director of the FTC Bureau of Consumer Protection, said Dollar General betrayed the trust of millions of American consumers. He noted the company imposed financial harm on communities struggling to make paychecks last.

Dollar General stock fell about 4 percent following the announcement. The company did not immediately respond to a request for comment. The suit arrives as shoppers seek discounts amid high food and gas prices. Lawmakers from both parties are using the action to demonstrate consumer protection efforts before next week's midterm elections.