Shoppers hit with surprise fees at Dollar General, FTC lawsuit claims

The Federal Trade Commission and 20 state attorneys general filed a lawsuit against Dollar General on Monday. The complaint claims the retailer routinely charged customers more than the prices listed on shelves, tags, and ads.

Dollar General shares fell approximately 4% following the announcement. The FTC alleges that thousands of stores extracted millions of dollars in unlawful overcharges. The agency says the company failed to maintain sufficient safeguards to stop the practice.

The lawsuit states that Dollar General has received tens of thousands of consumer complaints regarding price discrepancies. Despite this volume, the company did not implement policies to resolve the issue. The complaint describes the retailer as taking advantage of vulnerable shoppers.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the company betrayed the trust of millions of consumers. He added that the overcharges imposed financial harm on communities struggling with high costs.

Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin joined the federal agency in the suit.

Dollar General did not immediately respond to requests for comment. The timing of the suit coincides with the midterm election scheduled for next week. Officials from both parties aim to demonstrate efforts to protect consumers from elevated food and gas prices.