FTC and 20 states sue Dollar General over checkout overcharging
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
The FTC and 20 states sued Dollar General, alleging it charged more at the register than advertised.
The case targets a budget chain that is the only local store in some rural areas.
Background
Dollar General is a budget discount retailer based in Goodlettsville, Tennessee, with more than 21,000 stores nationwide. The Federal Trade Commission (the U.S. agency that polices deceptive business practices) and 20 states allege the chain advertised one price but charged a higher one at checkout. The suit cites thousands of consumer complaints, failed state inspections and undercover FTC shopping. In some rural areas Dollar General is the only local option for basic goods, food and supplies, and it runs more than 1,100 stores in North Carolina.
How it unfolded
- 2019 onwardDollar General has paid $6 million in settlements with six states over inaccurate pricing, according to the complaint.
- Early February 2026Dollar General says it was made aware of the FTC investigation and engaged cooperatively, making representatives available for sworn testimony.
- Oct 26, 2026The FTC and 20 states sued Dollar General in the U.S. District Court for the Middle District of Tennessee, alleging it charged customers more at the register than advertised prices.
- Oct 26, 2026Dollar General shares fell more than 4% on the day the lawsuit was announced.
- Oct 27, 2026North Carolina Attorney General Jeff Jackson and 19 state colleagues announced the suit at a press conference.
Who’s saying what
- Official
- FTC Bureau of Consumer Protection director Christopher Mufarrige said Dollar General "has betrayed the trust of millions of American consumers" and imposed financial harm on struggling communities.
- Party
- The FTC and states allege in the suit that Dollar General "has for years engaged in deceptive conduct" and "continues to advertise one price while charging a higher price at checkout."
- Support
- Dollar General says "our goal is 100% accuracy between shelf and register prices in every store," that occasional discrepancies can occur, and that it has not willfully disregarded customers' affordability needs.
- Caution
- Dollar General says the FTC's draft settlement demanded an amount "orders of magnitude larger than" any realistic assessment of the pricing discrepancies, that it made a counteroffer, and that it "will defend this litigation vigorously."
- Official
- North Carolina Attorney General Jeff Jackson called Dollar General a habitual offender that has been "ripping people off" even after repeated warnings to fix the problem.
- Official
- Wisconsin Attorney General Josh Kaul said the prices shoppers see displayed should match the prices they are charged at checkout.
Still unverified
Dollar General did not immediately reply to requests for comment from CBS News, the AP, Reuters and CNBC at the time of their reports.