The Federal Trade Commission and 20 states have filed a federal lawsuit alleging deceptive pricing practices against a convenience store chain that serves rural and impoverished pockets of America.

The 29-count civil lawsuit was filed Oct. 26 in the U.S. Middle District Court of Tennessee, claiming that Dollar General had engaged in a practice of advertising prices for food, laundry detergent, toothpaste and other goods, while ringing up higher prices at the register. The FTC and the states are seeking a permanent injunction, unspecified monetary relief and other measures.

The lawsuit called the extent of the unlawful practice “staggering.”

“Although Dollar General promises convenience, low prices and value, the company has routinely charged customers more at the register than the prices displayed on shelves, price tags and advertisements,” according to the lawsuit. “This pattern of inaccurate pricing has persisted for years and affects millions of purchases across the country.”

Pennsylvania, which has more than 1,000 Dollar General stores, reached a $1.55 million settlement with the chain’s Goodlettsville, Tennessee-based corporate parent in December after an investigation by the state Attorney General’s office found that customers had been charged higher prices than those posted on store labels “on numerous occasions.”

In a statement Monday, Dollar General said it would defend itself vigorously against the allegations.

“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,” the company said. “We remain ready and willing to engage in reasonable, meaningful discussions to resolve this matter while keeping our focus on what has always been at the heart of Dollar General — serving our customers and the communities we call home.”

The Pennsylvania settlement was among seven agreements between 2019 and 2026 that Dollar General reached with authorities in six states involving inaccurate pricing, which resulted in more than $6 million in penalties, according to the lawsuit.

“Despite repeated red flags, Dollar General has failed to correct the issue and continues to make false pricing statements,” the lawsuit said.

Dollar General has fielded at least 29,265 complaints of failing to honor the advertised price in all of the 48 states where it has stores. Dollar General, which trades on the New York Stock Exchange under the DG ticker symbol, has 20,893 stores in the U.S. and Mexico.

“Dollar General continues to advertise one price while charging a higher price at checkout,” the lawsuit alleges, which reflects “pervasive and systemic pricing inaccuracies, rather than isolated or accidental errors.”

Dollar General stores have become a feature of rural Pennsylvania in recent years, including nearly 50 stores in Fayette, Greene and Somerset counties alone. The lawsuit alleges that households earning $35,000 or less represent 60% of the company’s total revenue and 80% of Dollar Generals are located in towns with 20,000 or fewer people.

Although Pennsylvania was not a plaintiff in the lawsuit, undercover FTC investigators in March found that six out of 60 items rung up at a Dollar General in Sharpsburg had a different price than the ones listed, for an error rate of 10%, according to the lawsuit. In Ohio, consumers reported paying $4.25 for milk that had a shelf price of $3.95 and $6.35 for eggs that were advertised for $5.10.

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