New Jersey joins FTC lawsuit accusing Dollar General of overcharging customers
The lawsuit alleges the retailer repeatedly charged shoppers more than advertised prices. Dollar General disputes the allegations and says it has improved its pricing procedures.
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New Jersey has joined the Federal Trade Commission and 19 other states in suing Dollar General, accusing the discount retailer of repeatedly charging customers more at checkout than the prices advertised on shelves, in stores and online.
The lawsuit, filed Monday in federal court in Tennessee, alleges the company's pricing practices have persisted for years, resulting in millions of dollars in overcharges for consumers buying food, cleaning supplies and other household necessities.
The complaint includes an allegation from a New Jersey shopper who reported in October 2024 that a buy-two-get-one-free promotion on bags of chips was not honored, resulting in a higher charge than advertised.
According to the lawsuit, Dollar General received at least 29,265 customer complaints about failing to honor marked prices between January 2023 and March 2026, spanning all 48 states where the retailer operates.
Federal investigators also conducted undercover purchases at Dollar General stores in Ohio, Missouri, Pennsylvania and Maryland in early 2026. Each purchase revealed multiple pricing discrepancies, including both overcharges and undercharges, but resulted in a net overcharge, according to the complaint.
The lawsuit also cites a $1.2 million settlement Dollar General reached with New Jersey in 2023 over pricing inaccuracies.
"Bait-and-switch pricing hurts New Jersey families who are already struggling just to get by," Attorney General Jennifer Davenport said. "Together with the FTC and our fellow states, we are taking action to hold Dollar General accountable and protect New Jerseyans from unlawful pricing practices."
In a statement Monday, Dollar General disputed the lawsuit's characterization of its conduct, saying its goal is complete accuracy between shelf and register prices.
"As with other retailers and despite our policies and procedures, occasional price discrepancies can occur," the company said. "When that happens, our store teams are instructed, empowered, and expected to make things right for the customer."
Dollar General said it has enhanced its price-accuracy procedures in recent years and intends to defend itself against the lawsuit.
The complaint alleges Dollar General knew about recurring pricing discrepancies but failed to implement adequate safeguards. It accuses the company of violating federal consumer protection laws, as well as state laws, including the New Jersey Consumer Fraud Act.
The FTC and participating states are seeking court orders to stop the alleged practices, along with monetary relief and civil penalties.
