FTC and several states sue Dollar General in Tennessee federal court

The company says the FTC's demand for significant monetary relief relies on unsupported assumptions.

The Federal Trade Commission and several states have sued Dollar General in the U.S. District Court for the Middle District of Tennessee. The suit alleges violations of the FTC Act and the Gramm-Leach-Bliley Act, along with state consumer protection laws and state weights and measures laws.

The suit follows a draft complaint and settlement order that the company received from FTC staff on September 23, 2026. The FTC demanded significant monetary relief. Dollar General says that demand relies on unsupported assumptions. The plaintiffs seek injunctive relief, a monetary judgment and civil penalties.

Dollar General says it intends to defend the matter vigorously. It warns that an unsuccessful defense could have a material adverse effect on its consolidated financial statements.

This is a direct enforcement action, not a merger-clearance matter like those involving Cintas, Lantheus and MarketAxess on October 22. Shein closed its own probe with a $100 million settlement. Dollar General is contesting the claims, and it faces injunctive relief and civil penalties across several states, so its exposure is open-ended rather than capped. The company's own warning signals real downside risk, not a routine compliance matter. The draft settlement order was rejected over what the company calls unsupported assumptions, and litigation could run well beyond a single quarter.