Dollar General stock drops 4% after 21 agencies file $10 million overcharge suit

Dollar General shares fell roughly 4% on Monday after the Federal Trade Commission and 20 state attorneys general filed a joint lawsuit. The agencies allege the discount retailer routinely charged customers more than the prices listed on shelves, tags, and in ads.

The complaint details a pattern of overcharging in thousands of locations. Regulators claim the company collected millions of dollars in unlawful fees while failing to implement controls to stop the practice. They describe the affected shoppers as vulnerable consumers who relied on the posted figures for budgeting.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said the retailer betrayed the trust of millions of Americans. He added that the financial harm falls hardest on families trying to stretch their paychecks. The agency noted that Dollar General received tens of thousands of complaints about these price gaps but did not adjust its policies.

Twenty states joined the federal suit, including California, Texas, Florida, and Ohio. The list spans jurisdictions from Alabama to Wisconsin. Dollar General did not immediately respond to a request for comment regarding the filing.

The legal action arrives as consumers face high costs for food and fuel. Lawmakers from both parties are using the case to demonstrate consumer protection efforts. The midterm elections are scheduled for next week.