FTC, 20 states sue Dollar General

(CNN, KYMA) - The Federal Trade Commission (FTC), along with 20 states, including Arizona and California, has sued Dollar General over allegations of deceptive pricing practices.

The lawsuit alleged Dollar General repeatedly mislabeled prices and overcharged customers.

It said the company failed to correct the issue even though corporate leaders knew of the existing issues.

The suit claimed deceptive pricing cost consumers millions of dollars.

It said Dollar General received tens of thousands of complaints for not honoring an advertised price.

The FTC said this was especially harmful to Dollar General's key customer base low and fixed-income shoppers who are already stretched thin financially.

Dollar General operates more than 21,000 stores nationwide and markets itself as a low-priced alternative to big-box stores.

The company has not yet responded to the suit.