Federal and state regulators sue Dollar General over register prices

Regulators filed a lawsuit against Dollar General on Monday.

The Federal Trade Commission and 20 states accuse the retailer of charging customers more than the prices shown on shelves, tags, and ads. The complaint states that thousands of stores extracted millions of dollars in unlawful overcharges. It argues the company lacked safeguards to stop the practice and ignored tens of thousands of consumer complaints.

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

The group of states includes 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.

Shares of Dollar General dropped about 4% after the announcement. The suit arrives while shoppers seek discounts due to high food and gas prices. Officials also aim to demonstrate consumer protection efforts before the midterm election next week.