The Federal Trade Commission and 20 states sued Dollar General, accusing the retail giant of overcharging customers for years by mislabeling prices and failing to correct discrepancies, with the company facing a settlement in New York alone.
The Federal Trade Commission (FTC) and 20 states have filed a lawsuit against Dollar General, alleging the retail chain systematically overcharged customers by displaying lower prices on shelves and advertisements but charging higher amounts at checkout. The lawsuit, filed in Nashville federal court, accuses the company of extracting millions of dollars in unlawful overcharges
through inaccurate pricing
practices that have persisted for years.
Lawsuit Details and Consumer Complaints
The FTC’s complaint, supported by a Guardian investigation, reveals that Dollar General failed more than 4,300 government price-accuracy inspections across 23 states over three years. Undercover shoppers in Ohio, Pennsylvania, Missouri, and Maryland found overcharges on multiple products during secret visits, with one test in Cleveland showing 14% of items rang up at higher prices than displayed. The lawsuit claims the company received over 29,000 complaints from 2023 to 2026, with thousands of customers reporting prices that did not match advertised deals.
States joining the lawsuit include Alabama, Illinois, Michigan, Ohio, and New York, with Michigan Attorney General Dana Nessel stating, Consumers deserve to be treated with respect in any store where they choose to spend their money.
The complaint alleges that Dollar General’s practices disproportionately harm low-income shoppers, as the chain operates 80% of its more than 20,893 stores in towns with 20,000 or fewer residents. The lawsuit also cites a Guardian investigation that found the company flunked thousands of government price-accuracy inspections in 23 states between 2022 and 2025.
We joined @FTC in filing a lawsuit against Dollar General for engaging in long-running deceptive pricing practices by routinely charging customers more at the register than the prices displayed on shelves, price tags, and advertisements, costing consumers millions of dollars. pic.twitter.com/ES8djUNXx5
Among the complaints, Ohio Attorney General Andy Wilson noted that Dollar General’s pricing discrepancies violated the law, while stating that the prices on store shelves are what customers should be paying.
The lawsuit further claims that from January 1, 2023, through March 31, 2026, Dollar General received at least 29,265 complaints categorized as “Did Not Honor Marked Price,” with complaints submitted in all 48 states where it operates. These complaints demonstrate widespread consumer harm and confirm that customers nationwide have been charged more than the advertised price.
Dollar General’s Response and Previous Settlements
Since 2019, Dollar General has paid $6 million in penalties for inaccurate pricing, including a $1 million settlement with Ohio in an earlier case where Ohio sued Dollar General and Family Dollar for the same issue of advertising one price and charging another. The company also faced a deal with New York in October, where the New York attorney general announced a deal to settle allegations of overcharging customers across the state. In a separate case, the New York attorney general announced a deal to settle allegations of overcharging customers across the state.
The lawsuit also references prior settlements with six state attorneys general and consumer protection agencies, including a $1 million agreement with Ohio after a year of legal action. Ohio Attorney General Andy Wilson stated, The prices on store shelves are what customers should be paying.
The complaint notes that Dollar General has entered into seven settlements with six state Attorneys General and consumer protection agencies concerning inaccurate pricing, paying more than $6 million in penalties.
Financial Impact and Market Reaction
Dollar General’s stock fell approximately 4% on October 26, 2026, after the lawsuit was announced, closing down 3.22% Monday at $128.42. The company’s total revenue for last year was $42.72 billion, according to filings, as it faces growing scrutiny over pricing transparency amid rising consumer costs.
The lawsuit also cites a December 2025 Guardian investigation that found Dollar General frequently overcharged customers and failed thousands of government price-accuracy inspections in 23 states from 2022 to 2025.
Under the terms of the lawsuit, Dollar General faces potential penalties for its pricing practices. The suit also claims that the company performed internal audits that confirmed the problem, yet it failed to implement policies to address the issue. The FTC and states are seeking a permanent injunction, along with monetary and other relief.
The lawsuit includes examples of specific instances where customers were overcharged, such as a case in Michigan where a consumer found eggs for $3.25. When she went to the register, a clerk rang up the eggs for $4.50. The complaint states that the clerk refused to change the price, stating that yesterday was her last day and she didn’t care. The suit also references eight class-action lawsuits filed against Dollar General since 2022 pertaining to pricing accuracy problems, with the company facing widespread criticism for its failure to honor advertised prices.
Dollar General’s statement emphasizes its commitment to continuous improvement, noting that in recent years it has enhanced our price-accuracy processes and remain committed to continuous improvement.
However, the lawsuit argues that the company’s practices have persisted for years, affecting millions of purchases across the country. The FTC and states allege that Dollar General’s deceptive conduct harms the very consumers it claims to serve, with the company extracting millions of dollars in unlawful overcharges through systemic pricing inaccuracies.
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