Shoppers paid more than shelf tags showed, US and 20 states allege in court

The Federal Trade Commission and 20 states accuse Dollar General of billing shoppers more than the prices printed on shelf tags, labels and ads. The complaint alleges thousands of locations took in millions of dollars through such gaps while lacking safeguards to prevent them. It also states that the company received tens of thousands of consumer complaints about charging above advertised prices and did not adopt policies to address the issue.

Shares of Dollar General fell roughly 4% after the announcement on Monday. Christopher Mufarrige, who directs the FTC's Bureau of Consumer Protection, said Dollar General has "betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last." The company did not immediately respond to a request for comment.

The filing arrives as grocery and fuel costs stay elevated for shoppers. It also lands one week before the midterm elections, when officials from both parties are pointing to consumer protection work ahead of voting.

The states on the complaint are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.