Federal regulators and 20 states have filed a lawsuit accusing Dollar General of repeatedly charging customers more than advertised prices, alleging the discount retailer continued the practice despite thousands of complaints and warnings about pricing discrepancies.
By yourNEWS Media Newsroom
The Federal Trade Commission and 20 states have filed a federal lawsuit against Dollar General, accusing the discount retailer of systematically overcharging customers by ringing up merchandise at prices higher than those displayed on store shelves, price tags and advertisements.
The lawsuit, filed Oct. 26 in the U.S. District Court for the Middle District of Tennessee, alleges that the company continued the practice for years despite receiving tens of thousands of customer complaints and repeatedly failing government pricing inspections.
According to the FTC’s official announcement, the alleged violations resulted in millions of dollars in unlawful charges affecting shoppers nationwide.
Dollar General, headquartered in Goodlettsville, Tennessee, operates more than 21,000 stores across the United States, with a substantial presence in rural and lower-income communities.
“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,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
“The FTC’s action underscores the agency’s commitment to lowering costs for consumers by stopping deceptive pricing practices that harm Americans,” he added.
The complaint alleges that customers frequently discovered higher prices at checkout than those advertised in stores, sometimes without realizing they had been overcharged.
Federal and state officials contend that the discrepancies were widespread rather than isolated mistakes and that Dollar General failed to implement adequate safeguards despite knowing about the problem.
The lawsuit cites nearly 30,000 consumer complaints about the retailer’s failure to honor advertised prices, along with thousands of unsuccessful state pricing inspections.
Regulators also allege that the discrepancies disproportionately affected shoppers who depend on Dollar General for affordable groceries, household supplies and other necessities.
The complaint seeks a permanent injunction, monetary relief, civil penalties and other remedies intended to prevent future violations.
The states participating in 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.
The FTC alleges violations of the Federal Trade Commission Act and the Gramm-Leach-Bliley Act, while participating states are pursuing claims under their respective consumer protection laws.
Dollar General has rejected allegations that it deliberately disregarded customers’ interests.
In an Oct. 26 statement responding to the lawsuit, the company defended its pricing practices and said it would vigorously contest the government’s claims.
“Our goal is 100% accuracy between shelf and register prices in every store,” Dollar General said.
The retailer acknowledged that occasional discrepancies can occur despite company policies but disputed the FTC’s characterization of its conduct.
Dollar General also criticized the government’s proposed financial recovery, arguing that regulators had relied on a flawed calculation that substantially overstated the potential consumer harm.
The company said it attempted to negotiate a resolution before the lawsuit was filed, including agreeing to numerous proposed operational changes.
According to Dollar General, federal regulators demanded a monetary payment the company considered excessive and rejected its efforts to establish an alternative settlement amount.
The retailer also disputed the government’s interpretation of the Gramm-Leach-Bliley Act as a basis for financial recovery.
Dollar General said it remains willing to negotiate a reasonable settlement while defending itself in court.
The lawsuit follows previous state investigations into pricing problems at Dollar General stores.
In North Carolina, Attorney General Jeff Jackson said the retailer had repeatedly failed inspections and continued overcharging customers despite enforcement actions.
“We’re suing Dollar General because they’re ripping people off, and they know it,” Jackson said in an Oct. 27 announcement.
“People should be able to trust that the price they see on the shelves is the price they’ll pay,” he added.
North Carolina officials reported that 10 Dollar General locations had been fined for overcharging customers during inspections conducted shortly before the federal lawsuit.
At one store in Swannanoa, inspectors found customers were being overcharged for 32 of nearly 300 products examined.
Across 28 inspections involving 10 locations over two years, state officials identified nearly 400 pricing discrepancies.
The findings illustrate how shelf-price inconsistencies can affect shoppers purchasing everyday necessities, even when the difference on an individual item appears relatively small.
Michigan Attorney General Dana Nessel also joined the lawsuit, citing the need to protect customers from inaccurate pricing.
In an Oct. 26 statement, Nessel said consumers deserve accurate information when deciding where and how to spend their money.
Michigan’s claims include alleged violations of the state’s Shopping Reform and Modernization Act, commonly known as the Scanner Law, and its Consumer Protection Act.
The legal action comes as retailers face continued scrutiny over pricing practices and affordability.
Dollar General has built its business around offering low-cost merchandise in convenient locations, including communities with limited access to larger supermarkets and retailers.
The company says approximately 75% of the U.S. population lives within five miles of one of its stores.
That extensive reach makes pricing accuracy particularly important for customers who may have few nearby shopping alternatives.
The FTC argues that the retailer’s size, market position and knowledge of the complaints make the alleged failures especially consequential.
Dollar General maintains that its longstanding mission is to provide affordable goods and that any pricing errors should not be interpreted as evidence of intentional deception.
The case remains pending, and the allegations have not been established as findings of liability by a court.
Federal and state regulators are seeking financial remedies for affected consumers and court-ordered changes to Dollar General’s pricing practices, while the company says it will defend its operations and continue seeking a possible resolution.
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