FTC sues Dollar General over $10 million in hidden price gaps
The regulator and 20 states claim the retailer routinely charged shoppers more than shelf tags indicated, causing shares to fall.
By Iris Bennett ·
Federal regulators and state officials filed a lawsuit against Dollar General on Monday.
The Federal Trade Commission and 20 states allege the chain charged customers more than the prices shown on shelves, tags, and ads.
The complaint states that thousands of stores extracted millions in unlawful overcharges.
Dollar General shares dropped approximately 4 percent following the announcement.
The filing claims the company received tens of thousands of consumer complaints about price discrepancies.
Regulators say the retailer failed to implement policies to stop the practice.
Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the company betrayed consumer trust.
He noted the financial harm affects communities struggling with costs.
The 20 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.
Dollar General did not immediately respond to a request for comment.
The suit was filed ahead of next week's midterm election.
Officials from both parties use the case to demonstrate efforts to protect consumers from high costs.
Source: CNBC
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