The U.S. Federal Trade Commission ( FTC ) stated on Monday that it has filed a lawsuit jointly with 20 states, accusing Dollar General of charging customers prices higher than those displayed on the shelves, price tags, and in advertisements.

After FTC announced this lawsuit, the stock price of Dollar General fell by about 4%.

The complaint alleges that thousands of stores under Dollar General "exploited vulnerable consumers, and by charging illegally in excess of what was necessary to prevent such behavior, amassed millions of dollars."

The complaint also states that Dollar General has received "tens of thousands" of complaints from consumers regarding fees that are higher than the advertised prices, yet the company has not implemented any relevant policies to address this issue.

The states that joined the lawsuit alongside FTC include: Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin.

The director of the Consumer Protection Bureau, FTC, stated: " Dollar General has betrayed the trust of millions of American consumers and caused significant economic harm to communities and consumers who already struggle to make ends meet with their salaries."

Dollar General did not immediately respond to the request for comment.

At the time of this lawsuit, consumers were seeking discounts due to the persistently high prices of food and gasoline. Meanwhile, ahead of the mid-term elections next week, officials from different political backgrounds also wish to demonstrate their efforts in protecting consumers from the impact of high costs.