The Federal Trade Commission and 20 states filed a lawsuit on Monday against Dollar General, alleging the discount retailer routinely charged customers higher prices at checkout than those displayed on store shelves and in advertisements. The complaint, filed in the U.S. District Court for the Middle District of Tennessee, accuses the company of extracting millions of dollars in overcharges through deceptive pricing practices over several years.
The legal action follows a history of pricing investigations involving the retailer. In New York, Attorney General Letitia James announced a settlement on October 15, 2026, after an investigation found that 43% of the state's Dollar General stores failed price accuracy inspections between 2021 and 2023. Under New York law, retailers must honor the lowest advertised price and maintain at least a 98% accuracy rate during inspections by Weights and Measures officials.
The federal and state lawsuit alleges that thousands of Dollar General stores engaged in a pattern of inaccurate pricing that affected millions of purchases. The FTC cited thousands of consumer complaints regarding the company's failure to honor shelf prices at the register. Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, stated that the company’s conduct imposed financial harm on consumers managing tight household budgets. Dollar General did not immediately respond to requests for comment regarding the federal lawsuit.
Shoppers in New York will see a direct change in how they interact with the retailer due to the $1.875 million settlement reached in October 2026. The company is required to reformat its receipts to clearly show discounts for each item and must post signs alerting customers of their right to the lowest listed price. Additionally, the settlement provides $1.875 million worth of food and personal goods to Foodlink, a Rochester-based nonprofit, to be distributed to residents experiencing food insecurity. These reforms include unannounced audits of every New York location twice per fiscal year to verify pricing accuracy.
Nationally, the FTC and 20 states are seeking a permanent injunction to stop the alleged pricing practices and are asking for monetary relief for harmed consumers. While the New York settlement is already in effect, the broader federal lawsuit remains pending in court. A specific date for further hearings or a final ruling on the national case has not yet been reported. If the federal suit is successful, it could lead to similar receipt reforms and price-matching requirements at all 21,000 locations across the country.