Michigan has joined a federal lawsuit against Dollar General, alleging that the discount store chain has made millions of dollars by systematically overcharging customers in some of America’s most vulnerable communities.
The lawsuit was filed on Monday by the Federal Trade Commission and the attorneys general of 20 different states, including Michigan’s Dana Nessel. It lists a variety of ways the chain allegedly has either tolerated or encouraged overcharging, describing its conduct as “staggering.”
According to the lawsuit, one Michigan customer bought a carton of eggs priced at $3.25, but was charged $4.50 for them at the register. Another attempted to use a set of laundry detergent coupons, only to be told they had purchased the wrong scent, rendering the coupons invalid. Yet another purchased multiple items advertised under a buy-one-get-one discount, but was charged full price for each.
“I think it’s time the attorney generals office launches a full investigation to protect us, especially since we already pay so much for necessities,” one Michigander’s complaint read. “Every little bit of money is a lot in these times.”
Dollar General received nearly 30,000 customer complaints related to overcharging between January 1, 2023 and March 31, 2026, according to the lawsuit. It alleges that the chain failed to implement policies to properly address the systemic issue, despite knowing of its existence.
The FTC and the coalition of states allege that these actions violate several federal and local laws; in Michigan’s case, they run afoul of the Michigan Shopping Reform and Modernization Act and the Michigan Consumer Protection Act. The FTC and the states are seeking a permanent injunction, monetary relief, and other remedies.
Dollar General claims it did not intentionally overcharge customers.
“As with other retailers and despite our policies and procedures, occasional price discrepancies can occur,” the chain said in a statement. “When that happens, our store teams are instructed, empowered, and expected to make things right for the customer. In recent years, we have enhanced our price-accuracy processes and remain committed to continuous improvement.”
The store also took issue with the timeline of the FTC’s investigation and subsequent lawsuit, claiming it was unusually swift. It also says the monetary relief demanded by the FTC and the states is significantly larger than any profit it could have made via overcharging.
The suit is not the first of its kind; according to the complaint, Dollar General has already paid over $6 million to various states and consumer protection agencies in overpricing settlements since 2019.
Dollar General is by far the largest retailer in the nation by number of stores, with over 21,000 locations in 48 states. The chain often targets food deserts in rural parts of the country and poor urban areas which lack easy access to big-box stories and other sources of groceries. According to the lawsuit, about 60% of the chain’s revenue comes from households making $35,000 or less.
This is not the only controversy Dollar General found itself mired in; the store has previously been criticized for the poor nutritional quality of its products, outcompeting local businesses, and subjecting its workers to poor pay, harsh conditions, and severe understaffing.
“Consumers everywhere deserve to be treated with respect in any store where they choose to spend their money,” Nessel said in a statement, adding, “I appreciate the efforts of the FTC and other states on this far-reaching investigation, and together we can put an end to these deceptive practices and restore some truth in pricing across the country.”
