Dollar General hit with lawsuit over shelf price overcharges
The FTC and 20 states accuse the retailer of collecting millions from customers who paid more than advertised prices.
By Lucia Orlov ·
Retailers in the United States are under renewed scrutiny for how they handle pricing errors at the register.
The Federal Trade Commission filed a lawsuit on Monday against Dollar General. The agency joined 20 states in the suit. The group alleges the company charged customers more than the prices shown on shelves, tags, and ads.
Dollar General shares fell roughly 4% following the announcement. The complaint states that thousands of stores engaged in the practice. It claims the retailer used weak safeguards to prevent these overcharges.
The filing says Dollar General received tens of thousands of consumer complaints. It argues the company failed to adopt policies to fix the problem. The states involved are 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, said the retailer betrayed consumer trust. He noted the financial harm affects communities struggling to make paychecks last. Dollar General did not immediately respond to requests for comment.
The suit lands as shoppers seek discounts amid high food and gas costs. Lawmakers from both parties are using the case to show they are protecting consumers before next week's midterm election.
Source: CNBC
