The Federal Trade Commission and 20 states filed a lawsuit against Dollar General on Monday, Oct. 26, alleging the retailer charged customers more than the prices displayed on shelves, price tags, and in advertisements.
According to a report published Oct. 26, the lawsuit claims the retailer has extracted millions of dollars through unlawful overcharges and has received tens of thousands of complaints from consumers regarding the pricing discrepancies.
The complaint alleges that thousands of Dollar General stores have taken advantage of vulnerable shoppers by using insufficient safeguards to prevent overcharging. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that Dollar General has betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last.
Dollar General's stock dropped approximately 4% following the FTC's announcement of the lawsuit. The retailer issued a statement saying it will defend the litigation vigorously, noting that occasional price discrepancies can occur despite company policies and procedures.
Dollar General stated that its store teams are instructed and expected to make things right for customers when discrepancies occur. The company noted it has enhanced its price-accuracy processes and has cooperated with the FTC's investigation since February by producing documents, data, and sworn testimony.
The company mentioned it received a draft complaint and settlement offer from the FTC in September. Dollar General stated it had sent a monetary counteroffer and expressed surprise when the FTC proceeded to file the lawsuit rather than responding to that offer.
The lawsuit comes as shoppers seek discounts while facing elevated prices for food and gas. Additionally, officials across the political spectrum aim to demonstrate efforts to protect consumers from high costs ahead of the midterm election scheduled for next week.
