Dollar General is being sued by the Federal Trade Commission and 20 states over allegations that it repeatedly charged customers more at checkout than the prices advertised on store shelves.
The lawsuit, filed Monday in federal court in Tennessee, claims the discount chain continued the practice for years despite receiving tens of thousands of complaints about incorrect prices.
Regulators say the overcharging particularly hurt low-income and fixed-income shoppers who rely on advertised prices to stretch their household budgets.
“Dollar General has betrayed the trust of millions of American consumers and imposed significant financial harm on communities and consumers who are already struggling to make their paychecks last,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
“The FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans.”
The lawsuit follows an $8.5 million class-action settlement months ago over similar allegations, which Dollar General agreed to without admitting wrongdoing. Dollar General also paid more than $6 million in penalties under seven settlements with state authorities between 2019 and 2026 over inaccurate pricing, according to the FTC.
Dollar General operates more than 21,000 stores nationwide and markets itself as a low-priced alternative to larger discount and big-box retailers. The company sells thousands of everyday, essential household items.
According to the suit, the retailer received at least 29,265 complaints for failing to honor marked prices between January 2023 and March 2026. The complaints were made in all 48 states where Dollar General operates, the FTC alleged.
The lawsuit claims Dollar General failed to fix pricing problems despite repeated customer complaints and inspections revealing errors.
“Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements,” the FTC and states alleged in the complaint. “This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country.”
The lawsuit alleges violations of the FTC Act, the Gramm-Leach-Bliley Act and state consumer protection laws. The FTC and states seek a permanent injunction, monetary relief and other remedies.
The states joining the lawsuit are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
In response to the allegations, Dollar General said in a statement: "Our goal is 100 percent accuracy between shelf and register prices in every store.”
"As with other retailers and despite our policies and procedures, occasional price discrepancies can occur. When that happens, our store teams are instructed, empowered, and expected to make things right for the customer. In recent years, we have enhanced our price-accuracy processes and remain committed to continuous improvement,” the company said.
The retailer said it cooperated with the FTC’s investigation, providing more than 200,000 documents and over 350 gigabytes of data. It also said it attempted to negotiate a settlement before the lawsuit was filed, and was “surprised” when they instead pursued litigation.
“Although we respect the FTC’s role in protecting American consumers and the State representatives’ role in protecting the citizens of their respective states, we will defend this litigation vigorously,” the company said.
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