• Dollar General is paying $1 million in a settlement with the state of Ohio.
  • Ohio's attorney general said last year that Dollar General overcharged customers for items like groceries.
  • It's the latest sign of operational trouble for the dollar store chain.

Dollar General has reached a $1 million settlement with the state of Ohio after an investigation suggested that the chain had charged customers more for some items at checkout than on-the-shelf prices.

Under the settlement, Dollar General will pay $750,000 to the office of Ohio Attorney General Dave Yost. The money will go to food banks and other groups that distribute food and personal care items to those in need.

Another $250,000 will cover a penalty and investigative costs, according to a copy of the settlement filed in a Butler County court in September. Dollar General doesn't admit to any wrongdoing, according to the document.

The settlement was reported earlier by Columbus TV station NBC4.

"This is a win for Ohio consumers," Hannah Hundley, a spokesperson for Yost's office, told Insider. "We are in the process of finalizing how those funds will be distributed to local communities."

Dollar General did not immediately respond to a request for comment on the settlement.

The settlement comes nearly a year after Yost's office filed a lawsuit against Dollar General over the price discrepancies last November.

A county auditor's review of prices at 20 Dollar General stores in Southwestern Ohio in 2022 found that between 16.7% and 88.2% of the products at individual stores were priced incorrectly. Ohio law only allows an error rate as high as 2%.

In its own investigation last fall, NBC4 found several items that rang up for more than their shelf tags indicated at Columbus-area Dollar Generals. A can of Spaghetti-O's, for example, cost $2.25 at the register instead of the $1.50 listed on the shelf.

Under the settlement with Ohio, Dollar General agreed to provide enough staffing coverage to keep shelf prices up-to-date. For customers who find an item that costs more than the price listed on the shelf, Dollar General has to honor the shelf price and fix the tag within 24 hours.

District managers also have to conduct random price checks "no less than every 45 days" at individual stores, according to the settlement.

Dollar General has faced a variety of complaints about its stores from workers and customers. The chain settled another lawsuit, this one from the federal Equal Employment Opportunity Commission, that it took back job offers from applicants who had high blood pressure or bad eyesight.

Employees have told Insider that Dollar General often staffs stores with just a single worker, making it impossible to unpack items, restock shelves, and serve customers at the same time.

Many Dollar General stores are so cluttered with merchandise that fire marshals have ordered them to close.

The mess at some stores has attracted rodents and caught the attention of local health departments, Insider previously reported.

The Tennessee-based chain has also racked up millions in fines from the US Occupational Safety and Health Administration, only a fraction of which it has paid.

Executives said in August that they were trying to clean up their stores. Dollar General is taking $95 million in write-downs on surplus merchandise as well as deploying "smart teams" to stores that need cleaning up.

Do you work or shop at Dollar General and have a story idea to share? Reach out to this reporter at abitter@insider.com