Dollar General Corp. (NYSE:DG) shares extended their decline for the fourth consecutive day, falling nearly 1% in Wednesday’s pre-market session. This comes after the company rejected allegations that it engaged in widespread deceptive pricing practices, arguing that the Federal Trade Commission’s lawsuit misrepresented its commitment to affordable prices.
Dollar General Challenges FTC Settlement Demands
“Nothing could be further from the truth,” the retailer said in a statement, responding to a complaint from the FTC and 20 states filed on Monday, October 26.
“Our goal is 100% accuracy between shelf and register prices in every store,” Dollar General said. It acknowledged that “occasional price discrepancies can occur,” but maintained that employees must correct mistakes for customers. The company pledged to “defend this litigation vigorously.”
Dollar General said it learned of the investigation in February, cooperated with investigators and supplied executives for sworn testimony.
It alleged that the FTC demanded a payment “untethered to – and orders of magnitude larger than – any realistic assessment of amounts attributable to pricing discrepancies.” The retailer said it offered a counterproposal after four weeks of negotiations, but regulators sued before responding.
Regulators Allege Years Of Consumer Overcharges
The FTC and 20 states sued Dollar General, accusing it of repeatedly charging customers more at checkout than advertised.
The complaint cited at least 29,265 customer complaints about stores failing to honor marked prices between January 2023 and March 2026. Regulators seek monetary relief and court-ordered changes.
FTC consumer protection director Christopher Mufarrige accused the company of having “betrayed the trust of millions of American consumers.”
Expert Warns Of Sizable Financial Penalties
University of Minnesota law professor Prentiss Cox told Newsweek on Tuesday that participating states could impose “sizable penalties,” given the alleged misconduct’s scale and the number of states involved. The complaint also cited more than $6 million in payments under seven previous state settlements.
The dispute follows Dollar General’s stronger second-quarter performance, when sales climbed 5.2% to $11.29 billion. The retailer also raised its earnings outlook, even as executives warned that financially strained shoppers remained cautious.
Price Action: Dollar General shares were down 0.48% to $126.25 in pre-market trading on Wednesday, according to Benzinga Pro data. Shares closed Tuesday at $126.86, down 1.21% for the session and approximately 4% year to date. The stock fell 3.22% Monday after the lawsuit’s announcement.
Photo courtesy: Shutterstock
Recent Comments