Of all the ways to make a quick buck, this one didn't pan out for Dollar General. The embattled discount store has agreed to pay millions in penalties over allegations that it overcharged customers for everyday items.
And they're facing an even bigger challenge. A federal lawsuit accuses it of years of deceptive pricing practices across tens of thousands of stores .
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The Federal Trade Commission (FTC), along with 20 states, filed a lawsuit against the company on October 26, alleging that the company charged shoppers more than the prices marked on the shelves and in-store advertising.
The federal lawsuit comes just weeks after New York Attorney General Letitia James finished her state's investigation of Dollar General.
The skinny on the New York investigation
Investigators from New York Attorney General Letitia James' office went shopping at 11 Dollar General [NYSE: DG] stores in Western New York and paid at the register like everyone else. But on about 14% of the items they bought, they were charged more than the advertised price.
James' office made those findings public on Oct. 15 when it announced a settlement with Dollar General. The discount chain agreed to pay a $1.875 million civil penalty, but none of it will be paid in cash.
Instead, the company is donating nearly $1.9 million worth of food and personal items to Foodlink, a Rochester nonprofit that works to end hunger and will pass the goods along through its network of meal programs and food pantries. The shoppers who paid too much, however, will not get anything back.
"Dollar General regularly charged consumers higher prices than advertised, and the receipts shoppers received were difficult to understand," James's office said in a statement.
Why a few cents matter so much at Dollar General
Ohio settled with Dollar General for $1 million over the same issue in 2023, and Pennsylvania reached a $1.5 million settlement with the chain in 2025 after finding stores failed more than 40% of price accuracy inspections from 2019 to 2023 [a] .
In November 2023, Ohio Attorney General Dave Yost stated that $750,000 of his state's $1 million settlement would go to food banks and other hunger-relief groups in all 88 counties.
"Most people don't shop at Dollar General because they have a lot of extra money to spend," Yost told Ohio's county auditors. "So when a bottle of shampoo that should cost $1 costs $2 at the checkout, that's a real thing."
Dollar General has denied wrongdoing in both the Pennsylvania case as well as Dann's national lawsuit. When asked about the New York settlement, the company didn't say whether it disputes the attorney general's findings.
"Dollar General is committed to providing customers with accurate on-shelf prices on items purchased in our stores, and we are disappointed any time we fail to deliver on this commitment," the company said in an emailed statement to Moneywise.
It added that store teams are "instructed, expected and empowered" to fix a pricing discrepancy on the spot, and that it has measures in place to promote pricing accuracy that it continues to evaluate.
Still, the FTC is moving forward with its case. It alleges that thousands of Dollar General stores generated millions of dollars in unlawful charges because the company failed to put adequate safeguards in place.
"Rather than ensuring its prices at checkout are accurate, for years Dollar General avoided implementing safeguards to prevent continued overcharging, effectively shifting the burden of its own operational shortcomings onto the very communities and consumers who can least afford it," the lawsuit reads .
The states involved in the federal lawsuit include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
What to do if you're overcharged at Dollar General
Under the New York settlement, every Dollar General in the state has to post signs telling shoppers it will honor the lowest listed price.
An independent auditor will also make surprise price checks at every New York store twice a fiscal year. Any mismatch that inspectors or auditors find has to be fixed within 24 hours, and receipts have to show the discount on each item with all the savings listed in one place.
Still, you don't have to wait for an auditor to catch an overcharge. Snap a photo of the shelf tag before you get in line, look over your receipt before you leave and ask the cashier to fix anything that rang up too high. If the store pushes back, you can file a complaint with the New York Attorney General's Office or your state's consumer protection office.
Since Dollar General's settlement with the state of New York doesn't send a cent back to overcharged shoppers, catching a mistake at the register is the only way to keep that money in your pocket.
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This article originally appeared on Moneywise.com under the title: Dollar General hit with FTC lawsuit over allegedly overcharging shoppers millions — here's what consumers need to know
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
