FTC and 20 states sue Dollar General, saying shoppers paid more than shelf prices

The Federal Trade Commission and 20 states sued Dollar General Corporation on October 26, accusing the discount chain of charging customers more at the register than the prices shown on shelves, price tags and advertisements. The FTC said in its announcement that the practice has cost consumers millions of dollars.

The complaint was filed in the U.S. District Court for the Middle District of Tennessee. The states joining the case are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin. The commission voted 2-0 to bring the case.

Dollar General has betrayed the trust of millions of American consumers

What the lawsuit says

According to the complaint, Dollar General recorded at least 29,265 customer complaints in its "Did Not Honor Marked Price" category between January 1, 2023, and March 31, 2026, from all 48 states where it operates. Company staff typically use that category for customer contacts about an alleged difference between an item's shelf price and its register price, the complaint says.

FTC investigators also made undercover purchases, paying by credit card, at stores in four states between January and April 2026. In every one, the complaint says, the register charged more than the advertised price for several products.

The complaint also cites state and local price inspections. It says 33 states follow a National Institute of Standards and Technology procedure under which a store fails when more than 2% of the items checked carry inaccurate prices. Dollar General stores failed more than 39% of inspections in Kansas from January 2023 to March 2026, 53% of 73 inspections in New Mexico in early 2026, and 92 of 147 inspections in Missouri in an 18-month period ending in 2023, according to the complaint. In Wisconsin in 2023, 662 of 7,344 products scanned by inspectors, or 9%, rang up higher than the stated price.

Earlier settlements

The complaint says Dollar General has settled seven state actions over pricing accuracy since 2019, with six state attorneys general and consumer protection agencies, for payments totaling more than $6 million.

The list does not include a New York settlement announced on October 15, 2026. Under it, Dollar General will donate $1.875 million in food and personal items to Foodlink, a Rochester-based nonprofit, as a civil penalty, and post signs in all its New York stores about honoring the lowest listed price, according to the New York attorney general's office.

Why it matters for household budgets

The complaint describes a customer base that relies on low prices. It says about 80% of Dollar General stores are in towns of 20,000 people or fewer, that households earning $35,000 or less account for 60% of the company's revenue, and that the chain sells around 2,000 items for $1 or less. Its range includes food such as milk and eggs, cleaning and laundry supplies, and health and beauty items, and consumable products, its largest category, made up 82.0% of net sales in 2025.

Small overcharges, if proven, add up for those shoppers at a time when prices are already rising. Consumer prices were 3.7% higher in September than a year earlier, and grocery prices were up 1.8%, as our report on September prices shows.

What happens next

The FTC alleges violations of the FTC Act and the Gramm-Leach-Bliley Act, citing its Section 521, which bars using false statements to obtain a customer's financial information. The complaint alleges that the company collected shoppers' card and bank details at checkout after showing them false prices. The states allege violations of their own consumer protection and weights and measures laws. The plaintiffs ask the court for a permanent injunction, money for consumers and civil penalties.

The FTC notes that it files a complaint when it has "reason to believe" the law is being broken, and that the case will be decided by the court.

In a statement the same day, Dollar General said its goal is "100% accuracy between shelf and register prices in every store" and that, despite its policies, "occasional price discrepancies can occur." The company said "we will defend this litigation vigorously" and that it remains willing to discuss a resolution. It also said it had told FTC staff that the agency's consumer-redress calculation had "many methodological flaws" and that the FTC's theory of monetary recovery rests on an "incorrect interpretation of the GLB Act."

Shoppers who believe they were overcharged can report it to the FTC at ReportFraud.ftc.gov.