Reporting by Julia Gomez and Ernesto Centeno Araujo, USA Today Network/Palm Springs Desert Sun
California joined 19 other U.S. states and the Federal Trade Commission, or FTC, in suing Dollar General for allegedly overcharging customers.
“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,” the director of the FTC’s Bureau of Consumer Protection, Christopher Mufarrige, said in a statement posted to the FTC’s website on Monday, Oct. 26.
The complaint said the chain failed to address the issue and kept misleading customers by charging a higher price at the register than the shelf price. It also accused the corporation of knowing about the price inconsistency and failing to address it.
Here’s what to know about the lawsuit.
How many Dollar Generals are there in California?
According to Statista, the discount store had 20,942 stores in 48 U.S. States as of February 2026.
California had 261 locations, representing the bottom half of the list of states.
The chain had its largest presence in Texas, with 1,948 locations, hundreds more than the next-largest state, North Carolina.
‘False or misleading claims’
The FTC and 20 states are suing the corporation, accusing it of making “false or misleading claims” that “constitute unlawful, unfair and/or deceptive acts and practices that are prohibited” by consumer protection laws, according to court documents. By allowing the price discrepancy to continue, the lawsuit alleges the corporation violated the FTC Act, the Gramm-Leach-Bliley Act, and state laws.
The lawsuit cites complaints from Dollar General customers, failed state inspections, and FTC shopping sprees.
“Although Dollar General promises convenience, low prices, and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements,” the court document stated. “This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country.”
According to the FTC, thousands of customers have filed complaints about pricing discrepancies with Dollar General, which operates more than 21,000 stores nationwide.
Dollar General’s response
Dollar General responded to the lawsuit in a statement published on its website.
“The lawsuit filed today by the Federal Trade Commission and several States suggests that we have abandoned our mission and willfully disregarded the affordability needs of our customers,” the corporation said. “Nothing could be further from the truth.”
Dollar General says that while “occasional price discrepancies” may occur at its stores, its teams “are instructed, empowered, and expected to make things right for the customer” when they do.
What 20 states are involved in the lawsuit?
The following states joined the FTC in filing the complaint, according to court documents published by the FTC:
- Alabama
- Arizona
- Arkansas
- California
- Connecticut
- Florida
- Illinois
- Iowa
- Kansas
- Louisiana
- Michigan
- Mississippi
- Nebraska
- New Jersey
- North Carolina
- Ohio
- Oklahoma
- Tennessee
- Utah
- Wisconsin
Legal scrutiny over pricing at Dollar General
The accusations against Dollar General are not new, and the corporation has paid millions in settlements over pricing.
Dollar General has paid $6 million in settlements with six states due to inaccurate pricing since 2019, according to Reuters.
Could customers be compensated?
In its announcement, the FTC did not say whether or when customers can expect to receive a portion of a settlement if the lawsuit goes through.
However, the court document states that the FTC is seeking a “permanent injunction, monetary relief, and other relief” for the violations Dollar General is accused of.
Julia Gomez is a Trending reporter for USA TODAY and covers space phenomena, scientific studies, and natural disasters. Connect with her on LinkedIn, X, Instagram, and TikTok: @juliamariegz, or email her at jgomez@gannett.com. Contributing: Reuters.
Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.
This article originally appeared on Palm Springs Desert Sun.
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