FTC and 20 States File Lawsuit Against Dollar General Over Overcharging

The Federal Trade Commission, joined by twenty state attorneys general, filed a lawsuit against Dollar General Corporation on October 26, 2026. The complaint alleges the retailer has engaged in long‑running deceptive pricing practices by routinely charging customers more at the register than the prices displayed on shelves, price tags and advertisements.

According to the FTC, the company has repeatedly mislabeled prices, overcharged consumers and failed to correct the issue despite extensive corporate knowledge of the problem. The complaint lists Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin as partners in the action.

Director of the FTC’s Bureau of Consumer Protection, Christopher Mufarrige, said the lawsuit demonstrates the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans. He added that the action underscores the FTC’s focus on protecting vulnerable shoppers from financial harm.

Dollar General operates more than 21,000 stores nationwide and markets itself as a low‑priced alternative to large discount and big‑box retailers. The company sells thousands of household items at low prices, which are critical to its low‑ and fixed‑income customers who rely on the accuracy of its pricing.

The complaint details several points of alleged misconduct. It states that thousands of Dollar General stores have taken advantage of vulnerable shoppers by extracting millions of dollars in unlawful overcharges with insufficient safeguards to prevent the practice. It also notes that the retailer received tens of thousands of complaints from consumers across the country who say the company did not honor the advertised price, demonstrating widespread consumer harm.

The complaint further asserts that Dollar General knows it harms consumers by charging more at the register than the prices it advertises, as reflected by the numerous complaints it has received. Despite being made aware of the problem, the company has failed to implement policies and practices to adequately address the issue.

The FTC and the state partners allege that these practices violate the FTC Act, the Gramm‑Leach‑Bliley Act and state laws. The complaint was filed in the U.S. District Court for the Middle District of Tennessee following a 2‑0 vote authorizing the staff to file.

The case will be decided by the court. The FTC notes that it files a complaint when it has reason to believe that the named defendants are violating or are about to violate the law and that a proceeding is in the public interest.