The news: The Federal Trade Commission (FTC) sued Dollar General over deceptive pricing practices, alleging that the retailer routinely charges customers more at the register than the prices listed on shelves, price tags, or in advertisements. Twenty states, including Arizona, California, Florida, Illinois, Ohio, and Tennessee, joined the suit.

The complaint: The suit accuses the retailer of “extracting millions of dollars” from consumers and failing to implement policies and other safeguards to minimize the chances of pricing discrepancies despite being aware of the problem. According to the FTC, Dollar General received nearly 30,000 complaints between January 1, 2023, and March 31, 2026, from customers across all the 48 states where it operates for failing to honor displayed prices.

Prior regulatory action hasn’t resolved concerns over the pricing practices. Dollar General entered into seven settlements with state attorneys general and consumer protection agencies between 2019 and 2026 over inaccurate pricing, resulting in over $6 million in penalties. Just this month, the retailer agreed to a nearly $1.9 million deal with the New York State attorney general’s office after an investigation found it was charging as much as 39% more than listed prices.

Zoom out: The FTC’s suit against Dollar General comes at a time when consumers are highly sensitive to signs that retailers may be charging them more through unclear or potentially unfair pricing practices. In recent weeks, executives from Walmart and Home Depot clarified that their electronic price tags aren’t being used to implement dynamic or surge pricing. Walmart, Target, and McDonald’s have also emphasized that they won’t use shoppers’ personal information or factors like time of day to tailor pricing to individuals.

Consumer mistrust is rising. Just 1 in 3 mostly or completely trust retailers to offer fair or competitive pricing, according to an August survey conducted by Dynata for Akeneo. And the majority—57%—would trust a retailer less if prices changed based on their personal data or behavior.

Implications for retail: Though Dollar General currently finds itself in the government’s crosshairs, other retailers could be vulnerable to similar scrutiny. An analysis of over 1,900 testimonials from Kroger shoppers by the Center for Responsible Food Business found that 29% reported being overcharged at the register, while 13% cited misleading sales and signage. Additionally, a Guardian investigation found that Circle K stores failed 35% of government price-accuracy inspections in Florida and 62% in North Carolina, while 7-Eleven failed 47% of inspections in Colorado and Utah.

Beyond regulatory exposure, retailers that engage in questionable pricing practices risk eroding consumer trust. Accuracy is the top factor driving trust in companies, according to Toluna, raising the possibility that discrepancies between shelf and checkout prices could drive shoppers toward competitors perceived as more reliable.

Ironically, one measure that could help retailers to minimize pricing discrepancies is also drawing skepticism from consumers and regulators. Digital shelf tags have raised concern about personalized pricing, but as Walmart CEO John Furner noted, they enable retailers to display the right price more consistently while saving associates time.

The best path forward for retailers is to prioritize transparency, not only in their pricing practices but also in the rollout of potentially controversial initiatives like digital shelf labels. Doing so could help address shoppers’ concerns and reduce the risk of regulatory action and customer backlash.