FTC and 20 States Sue Dollar General Over Alleged Deceptive Pricing Practices

The Federal Trade Commission (FTC) and a coalition of 20 states filed a lawsuit on October 26 against Dollar General Corporation, alleging that the retailer has engaged in long-standing deceptive pricing practices. The complaint, filed in a Tennessee federal court, accuses the company of routinely charging customers more at the register than the prices displayed on store shelves, product tags, and promotional advertisements.

According to the legal filing, these pricing discrepancies have resulted in millions of dollars in unlawful overcharges across thousands of locations. Federal and state enforcers argue that the company failed to correct these issues despite having extensive corporate knowledge of the problem, which was underscored by nearly 30,000 consumer complaints received between 2019 and March 2026.

The FTC investigation included undercover shopping trips at various store locations, where officials consistently found that the final register price exceeded the advertised shelf price. Furthermore, state-level audits revealed frequent failures; for instance, stores in Ohio and New Mexico reportedly failed more than half of their pricing inspections. The lawsuit alleges that Dollar General’s failure to address these issues violates the FTC Act, the Gramm-Leach-Bliley Act, and various state consumer protection laws.

The complaint suggests that the root of the issue lies in operational policies and staffing levels. While Dollar General mandates a five-hour weekly shift for employees to update pricing labels, the lawsuit claims the company keeps its stores "too thinly staffed" to complete these tasks. The agency cited testimony from a former employee in Illinois who reported often working alone for hours at a time, making it impossible to maintain accurate pricing displays.

Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, stated that the company 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." The lawsuit seeks to hold the company accountable through monetary relief, including restitution for affected shoppers, civil penalties, and the recovery of profits gained from the alleged practices. The plaintiffs are also requesting a permanent injunction to prevent the retailer from continuing these deceptive methods.

This legal action follows a history of similar disputes between the retailer and state authorities. Since 2019, Dollar General has entered into seven settlements with six different states, paying a total of $6 million in penalties related to inaccurate pricing. Most recently, the company agreed to pay $1.9 million to settle pricing concerns in New York earlier this month. Despite these previous interventions, the FTC and state attorneys general allege that the company has failed to implement sufficient safeguards to protect consumers.

The states joining the FTC in this lawsuit include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah, and Wisconsin. As of the filing, Dollar General has not provided a public response to the allegations.