Dollar General sues for gap between shelf and register prices

The Federal Trade Commission and 20 states filed a lawsuit against Dollar General on Monday. The complaint seeks millions of dollars in refunds for customers who paid more at the register than on the shelf tag.

The suit claims the company charged shoppers higher prices than displayed on price tags and in ads. It alleges that thousands of stores extracted millions of dollars in overcharges without enough safeguards to stop the practice. The complaint also says Dollar General received tens of thousands of consumer complaints about the issue but did not fix its policies.

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

The legal action follows a pattern of state and federal officials targeting retail pricing. Shoppers have sought discounts while food and gas prices remain high. Lawmakers from both parties are using the case to signal efforts to protect consumers ahead of next week's midterm elections.

The 20 states joining the federal suit include 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 shares fell about 4 percent after the announcement. The company did not immediately respond to a request for comment.

The next step is the civil trial, which will determine the final refund amount and any penalties for future violations.