U.S. lawsuit against Dollar General includes 20 states and 29,265 pricing complaints
Key Facts
The U.S. Federal Trade Commission said on October 26, 2026, that it had joined 20 states in suing Dollar General, accusing it of charging prices at checkout higher than those displayed. The complaint says the problem persisted for years and affected millions of purchases. The alleged prices include those shown on shelves, price tags and advertisements. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said the company "caused significant financial harm to communities and consumers already struggling to make their paychecks last." No ruling had been issued on the allegations when the lawsuit was filed, as the FTC said it was for the court to decide.
The complaint says Dollar General received at least 29,265 complaints classified as failure to honor the posted price between January 1, 2023, and March 31, 2026. The complaints came from all 48 states where the company operates, according to the complaint. The plaintiffs describe a recurring pattern of charging a higher price at checkout than the price advertised for the item. That figure puts consumer complaints over a period of more than three years at the center of the case. The complaint says the discrepancies affected millions of purchases, without specifying the total amount paid in excess.
The complaint links the case to a prior series of settlements concerning pricing accuracy, saying the company entered into seven settlements in six states between 2019 and 2026. The resulting penalties totaled more than $6 million, according to the court document. In Ohio, the state sued the company in November 2022, then reached a $1 million settlement a year later. The state attorney general’s office said at the time that an audit of 20 stores found error rates ranging from 16.7% to 88.2%, while local rules allow an error rate of up to 2%. The office also said it received 12 complaints about similar practices between March 2021 and August 2022, including a report of shampoo displayed at $1 on the shelf and charged at $2 at checkout.
Earlier proceedings in Ohio included requirements for in-store price reviews. Under a temporary agreement announced in February 2023, district managers agreed to check the prices of at least 25 items in each store every 45 days and notify the head office if discrepancies affected more than five items. The settlement published in 2024 required the shelf tag to be corrected within 24 hours if a difference between the shelf price and the point-of-sale price was confirmed. It also required district managers to conduct random checks every 45 days. If a store recorded three failed audit reports within six months, it had to undergo a comprehensive evaluation. The attorney general’s office said $750,000 of the $1 million settlement was allocated to food banks and relief organizations in Ohio’s 88 counties.
Dollar General operates more than 21,000 stores across the United States and sells thousands of low-priced household items, according to the FTC. Company data for fiscal 2025 show net sales rose 5.2% compared with fiscal 2024, and the company said an increase in average transaction value reflected higher retail prices for goods. The company opened 589 new stores during 2025 and planned to open about 450 stores in 2026 and about 10 stores in Mexico. The case highlights pricing accuracy across a broad network that relies on selling low-priced everyday goods. These business facts do not resolve the allegations the court will consider.
The FTC and the states filed the complaint in the U.S. District Court for the Middle District of Tennessee, seeking a permanent injunction, monetary relief, civil penalties and other forms of relief. The available complaint did not specify the total penalties or damages sought. FTC commissioners voted 2-0 to authorize staff to file the lawsuit. The FTC said the case would be decided in court, while Reuters reported that Dollar General representatives were not immediately available for comment on October 26. Trading data shown in Reuters’ report indicated the stock fell 4.86% that day, while its previous close on October 23 was $132.69; that prior close does not represent a reaction to the lawsuit announcement.