Dollar General Corp (NYSE:DG) shares are slipping Monday after the Federal Trade Commission and 20 states sued the retailer. Here’s what you should know.
- Dollar General stock is showing notable weakness. What’s behind DG decline?
Dollar General Stock Falls After FTC Lawsuit
The federal consumer protection agency and 20 states are suing Dollar General over its pricing. The Federal Trade Commission says that, for years, checkout totals at the chain ran above the prices on shelves, tags and ads, taking millions of dollars from shoppers.
The case landed in federal court for the Middle District of Tennessee after the FTC’s commissioners voted 2-0 to proceed. The plaintiffs cite the FTC Act, the Gramm-Leach-Bliley Act and state laws. California, Florida, Illinois, Michigan, New Jersey and Ohio are among the participating states.
FTC Alleges Dollar General Overcharged Shoppers
The FTC says the problem reached thousands of stores, and that the chain’s safeguards were too thin to stop unlawful overcharges worth millions.
The agency treats customer complaints as evidence twice over. Shoppers lodged them by the tens of thousands, saying they paid above what the ads promised, which suggests the problem spread nationwide and that Dollar General heard about it. Yet the complaint says Dollar General failed to put adequate policies in place to correct the issue.
Christopher Mufarrige leads the FTC’s Bureau of Consumer Protection. Mufarrige said Dollar General “betrayed the trust of millions of American consumers” and hurt communities where families already stretch every paycheck. He framed the suit as part of the agency’s drive to lower costs for consumers.
DG Shares Are Sliding
DG Price Action: Dollar General shares were down 4.29% at approximately $127 at the time of publication on Monday, according to Benzinga Pro.
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