By Jody Godoy
Oct 26 (Reuters) – Dollar General repeatedly charged more than advertised prices even after receiving tens of thousands of consumer complaints, the US Federal Trade Commission and 20 states alleged in a lawsuit filed on Monday.
Dollar General, which appeals to low-income consumers with bargain prices, made millions of dollars by failing to honor prices advertised on fliers and shelves at checkout, the FTC and states allege.
The discount retailer’s stock was down more than 4% on Monday afternoon.
“Dollar General has, for years, repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem,” the FTC and states said in a statement.
Representatives for Dollar General did not immediately respond to a request for comment.
The lawsuit cited numerous complaints from consumers, failed inspections conducted by state authorities, and undercover shopping sprees conducted by the FTC.
Portions of the lawsuit detailing the company’s knowledge of the practices were largely redacted.
California joined the FTC lawsuit along with Florida, Illinois, Michigan, Ohio, North Carolina, Tennessee and 13 other states.
Since 2019, Dollar General has paid $6 million in settlements with six states over inaccurate pricing, according to the complaint.
(Reporting by Katharine Jackson and Susan Heavey; Editing by Doina Chiacu and Bill Berkrot)
