Popular retailer Dollar General is facing a lawsuit from the Federal Trade Commission (FTC) and 20 US States for allegedly charging consumers more money than initially advertised for various products. Compared to other retailers such as Target, Dollar General’s main premise is offering different goods for relatively low prices.
As of this writing, Dollar General operates over 21,000 across the US and Mexico. Some of Dollar General’s main goods that it offers to consumers include groceries, clothing, seasonal items, and personal supplies. In June 2026, Dollar General stated that it had added 2,000 items priced at $1 or less across its retail locations, which can be useful for shoppers on a tight budget. Dollar General occasionally carries Pokemon Trading Card Game products, though availability is dependent on each physical location’s inventory.
Dollar General Sued by the FTC and 20 US States
While video games are not a common sight at Dollar General locations, gamers can still purchase gift cards for titles such as Roblox for fixed amounts. However, according to the FTC lawsuit, the agency stated that Dollar General routinely charged customers at cash registers more money for goods than the prices that were displayed on store shelves, advertisements, and price tags on various products. The complaint claimed that thousands of Dollar General locations across the US have extracted millions of dollars in overcharges from consumers. Additionally, the FTC stated that executives within Dollar General Corporation were aware of the problem, citing some internal communications that were obtained. Christopher Mufarrige, the Director of the FTC’s Bureau of Consumer Protection, said, “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 FTC stated that, since Dollar General offers essential goods to consumers who are low-income or fixed-income shoppers, pricing accuracy is critical. The FTC is not alone in its case against the retailer, as 20 states have also joined in filing complaints. These states are Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Utah, Wisconsin, and Dollar General’s current home state of Tennessee. The lawsuit was filed by the US District Court for the Middle District of Tennessee, which is based in Nashville. The FTC and the aforementioned states claim that Dollar General’s practices are violations of state laws, along with the FTC Act and the Gramm-Leach-Bliley Act.
This is far from the first time that the FTC has weighed in on matters that affect consumers in an adverse way. Former FTC chair Lina Khan stated that, following Microsoft’s acquisition of Activision, the tech giant conducted price hikes on Xbox Game Pass and announced several layoffs. While Xbox has since decreased the price of Xbox Game Pass across the board, the gaming brand was still mired in layoffs throughout 2026. As of this writing, former Xbox studios Compulsion Games and Double Fine have gone independent, while Ninja Theory and Arkane Lyon are facing potential closure.
Dollar General responded by stating it would defend against the litigation but also remain open to engaging in discussions concerning the matter. Though Dollar General remains a popular choice for consumers looking to save money, it remains to be seen how the lawsuit from the FTC and the states will play out.
