New Jersey joins federal lawsuit accusing Dollar General of widespread overcharging

The FTC and 20 states allege the discount retailer charged shoppers more than advertised for everyday necessities, despite thousands of complaints and previous settlements.

A New Jersey shopper went to Dollar General expecting to get a free bag of chips as part of a buy-two-get-one-free promotion. Instead, the customer was charged more than the advertised price.

The shopper’s October 2024 complaint was hardly an isolated case. According to a federal lawsuit, Dollar General received nearly 30,000 complaints over a little more than three years from customers across the country who said the prices they paid at checkout were higher than those advertised on store shelves, in flyers, or online.

New Jersey Attorney General Jennifer Davenport joined the Federal Trade Commission and 19 other states Monday in suing Dollar General, accusing the retailer of systematically overcharging customers for groceries, cleaning supplies, and other household necessities while failing to correct problems it had known about for years.

“Bait-and-switch pricing hurts New Jersey families who are already struggling just to get by,” Davenport said in a statement about the lawsuit.

The 95-page complaint, filed Oct. 26 in U.S. District Court in Tennessee, alleges the company collected millions of dollars in improper charges, disproportionately affecting lower-income households that depend on its discount prices.

Undercover purchases found repeated overcharges

Federal investigators made undercover purchases at Dollar General stores in four states between January and April 2026. Every shopping trip uncovered multiple items priced higher at checkout than advertised.

• Ohio: Eight of 58 items were overpriced, resulting in a net overcharge of $3.25 after accounting for items priced too low.
• Missouri: Four of 59 items were overpriced, with a net overcharge of $4.07.
• Pennsylvania: Four of 60 items were overpriced, with a net overcharge of $2.60.
• Maryland: Five of 59 items were overpriced, resulting in a $3.65 overcharge.

According to the lawsuit, Dollar General received 29,265 customer complaints categorized as failure to honor marked prices between January 2023 and March 2026. Complaints came from all 48 states in which the company operates.

The complaint also alleges that Dollar General’s own internal audits identified recurring pricing discrepancies.

Problems persisted despite previous settlements

The lawsuit describes a pattern of inaccurate prices that continued despite enforcement actions by state regulators.

Between 2019 and 2026, Dollar General entered into seven settlements with consumer protection agencies and attorneys general in six states, paying more than $6 million in penalties.

The complaint also points to staffing problems. Stores frequently operated with too few employees to keep up with tasks such as replacing outdated shelf labels, according to the lawsuit. Corporate management was aware of the staffing shortages.

The company operates more than 20,000 stores nationwide and markets itself as a low-cost alternative to larger retailers. According to the complaint, households earning $35,000 or less account for 60% of its revenue.

Christopher Peterson, Acting Director of the Division of Consumer Affairs, said New Jersey will not tolerate deceptive pricing, especially when targeted at consumers who can least afford it.

“To engage in this kind of commercial conduct as consumers struggle to pay for basic needs is completely unacceptable,” Peterson said

Dollar General disputes allegations

In an Oct. 26 statement, Dollar General executives rejected the suggestion that it had deliberately disregarded customers’ financial needs.

Company representatives acknowledged that pricing discrepancies can occur but said employees are instructed and authorized to correct them.

“Our goal is 100% accuracy between shelf and register prices in every store,” company representatives said in a statement, adding that it has improved its pricing procedures in recent years.

Dollar General executives also challenged the FTC’s methodology for calculating consumer losses and said the company had attempted to negotiate a settlement before the lawsuit was filed. The retailer said it produced more than 200,000 documents during the investigation and would vigorously defend itself in court.

What the lawsuit seeks

The FTC and participating states are seeking a court order requiring Dollar General to stop the alleged deceptive pricing practices, along with financial compensation for affected consumers, civil penalties, and other remedies.

New Jersey alleges the company’s practices violate the state’s Consumer Fraud Act, which prohibits deceptive and misleading business practices.

Dollar General operates nearly 200 stores in New Jersey and more than 21,000 stores nationwide.