October 28, 2026
David P. Willis/USA Today Network via Reuters Connect
Prosecutors from New Jersey and 19 other states argue that Dollar General has preyed on its low-income customers by advertising one price and charging another. The Howell Township, New Jersey store is depicted above.
New Jersey has accused Dollar General of "bait-and-switch pricing" in a lawsuit filed jointly with 19 other states and the Federal Trade Commission on Monday.
The litigation claims that Dollar General, which operates 145 stores in New Jersey and more than 20,000 nationwide, has routinely and knowingly charged customers a different price than the one listed in circulars, advertisements and in-store displays. The deceptive marketing, prosecutors said, has netted the chain millions from its mostly low-income consumers. About 60% of Dollar General's revenue comes from households making $35,000 or less.
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The company has long been aware of this issue, the FTC and states allege. According to court documents, Dollar General received 29,265 complaints that it had not honored the marked price between January 2023 and March 2026. Such complaints were submitted in all 48 states where Dollar Generals operates.
The corporation has failed "thousands" of pricing inspections from state and local authorities, the lawsuit adds, and already has settled multiple lawsuits. Dollar General agreed to pay $1.55 million to Pennsylvania over alleged upcharging last year.
New Jersey also obtained a $1.2 million settlement in 2023. But Attorney General Jennifer Davenport is now seeking additional civil penalties and restitution for affected constituents. The lawsuit's plaintiffs also include Alabama, Arizona, Arkansas, California, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, Ohio, Oklahoma, Tennessee, Utah and Wisconsin.
"To engage in this kind of commercial conduct as consumers struggle to pay for basic needs is completely unacceptable," said Christopher Peterson, the acting director of the New Jersey Division of Consumer Affairs.
Dollar General disputed its portrayal in the lawsuit, which suggests "we have abandoned our mission and willfully disregarded the affordability needs of our customers," the company said in a statement. "Nothing could be further from the truth."
The discount chain vowed to fight the allegations and claimed it had been cooperating with the FTC investigation "tirelessly and in good faith.""Although we respect the FTC's role in protecting American consumers and the State representatives' role in protecting the citizens of their respective states, we will defend this litigation vigorously," Dollar General said.
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