ALABAMA: The Federal Trade Commission and 20 states, including Alabama, have sued Dollar General, alleging the discount retailer repeatedly charged customers more than the prices displayed on shelves, price tags and in advertisements.
The lawsuit claims the company failed to adequately address pricing discrepancies despite receiving tens of thousands of customer complaints.
The FTC and states allege the practices caused widespread financial harm to shoppers, including people who depend on discount stores for everyday necessities.
Alabama Attorney General Steve Marshall joined the lawsuit, saying consumers should be charged the advertised prices, and said, “The price on the shelf is supposed to be the price you pay,”
According to the complaint, thousands of Dollar General stores allegedly overcharged customers because the company lacked adequate safeguards to prevent pricing errors.
The FTC and states say consumers nationwide filed tens of thousands of complaints that items rang up at higher prices than advertised.
The lawsuit also alleges the company knew about the problem but failed to implement sufficient policies and practices to correct it.
Dollar General operates more than 20,000 stores nationwide and markets itself as a low-price alternative for household goods and other essentials. The allegations matter most to shoppers who rely on advertised prices to manage tight budgets.
The claims remain allegations, and the court will decide the case’s outcome.
The lawsuit includes an example involving an Alabama shopper who reported pricing discrepancies in June 2026.
According to the lawsuit, the customer purchased several items that rang up at higher than those displayed on store shelves.
One example involved Twinkies listed at $2.50 but charged at checkout for $3.50. The shopper also reported discrepancies involving paper towels, toilet paper and bleach.
Alabama officials allege that misleading prices in advertisements and in-store pricing violate the state’s Deceptive Trade Practices Act, which prohibits certain deceptive or misleading business practices.
The state is seeking relief available under the law, including refunds, restitution, civil penalties and court orders requiring changes to business practices.
Which states joined the Dollar General lawsuit?
The FTC and 20 states filed the complaint against Dollar General. The states participating in the lawsuit are:
Alabama
Arizona
Arkansas
California
Connecticut
Florida
Illinois
Iowa
Kansas
Louisiana
Michigan
Mississippi
Nebraska
New Jersey
North Carolina
Ohio
Oklahoma
Tennessee
Utah
Wisconsin
Alabama has 993 Dollar General locations.
Dollar General operated more than 20,893 stores nationwide as of April 2026, according to figures cited in the lawsuit.
The federal complaint says about 80% of Dollar General stores are located in towns with populations of 20,000 or fewer. It also states that roughly 75% of the U.S. population lives within five miles of a Dollar General location.
