Is Penny Shopping Legal? Everything You Need to Know

The Short Answer: Yes

Penny shopping is completely legal in the United States. When an item is priced at $0.01 in a store’s point-of-sale system, purchasing it at that price is a standard retail transaction. You’re paying the listed price for a product available for sale.

Reselling products you’ve legally purchased is protected under the first-sale doctrine, a legal principle established by the U.S. Supreme Court. Once you buy a product, you have the right to resell it.

Store Policies vs Law

While penny shopping is legal, individual stores can set their own policies about selling penny items. Some Dollar General managers may refuse to sell penny items or limit quantities. This is a store policy decision, not a legal restriction.

Key distinction: • Legal — Stores cannot charge you more than the price that scans in their system. • Policy — Stores can choose not to sell items at all (remove from shelves). • Your right — If an item scans at $0.01 and the store agrees to sell it, the transaction is valid.

Tax Obligations for Resellers

If you earn income from reselling penny items, you have tax obligations:

• Report resale income on your tax return (Schedule C for sole proprietors) • Track all expenses — gas, shipping supplies, platform fees, packaging • Consider getting a resale certificate to avoid paying sales tax on items you plan to resell • Set aside 20-30% of net profit for taxes if you don’t have other withholding

Consult a tax professional if your annual resale income exceeds $5,000.

Frequently Asked Questions

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