Dollar General overcharged shoppers, FTC and states allege in lawsuit

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)