Family Dollar has agreed to a $63 million settlement with the Federal Trade Commission and attorneys general from 17 states over allegations that shoppers were charged more at checkout than the prices displayed in stores and advertisements.
The agreement resolves allegations involving the discount chain’s stores nationwide. Regulators said Family Dollar continued to show prices on shelves, tags and advertisements that did not match the amounts charged at registers, despite earlier enforcement actions and customer complaints. The settlement imposes financial obligations and requires the company to establish a formal process for improving price accuracy.
Money for customers and participating states
Family Dollar would set aside $40 million for a consumer redress fund. Redress is money intended to compensate eligible customers. The company would also have to inform potential recipients that the fund exists through notices in its stores, on its website and in its mobile app.
The agreement also calls for a $20 million discount program for Family Dollar customers. In addition, the company would pay more than $3 million to the states that joined the case. Ohio would receive more than $300,000, according to the Ohio attorney general’s office.
| Settlement provision | Amount or requirement |
|---|---|
| Consumer redress fund | $40 million |
| Customer discount program | $20 million |
| Payments to participating states | More than $3 million |
| Price-accuracy oversight | Annual independent assessment and certification |
Company previously faced Ohio action
Ohio Attorney General Andy Wilson’s office said the state had already taken legal action against Family Dollar in November 2022, after receiving numerous complaints about prices that rang up higher than the amounts marked or advertised. That case resulted in a $250,000 settlement in 2023, along with an agreement that Family Dollar would provide food to food pantries in Ohio.
Ohio officials said the company continued to overcharge shoppers after that resolution, prompting the state to join the latest federal case. The allegations in the current action cover thousands of Family Dollar stores and follow other enforcement measures involving the chain’s pricing practices.
New monitoring requirements
Under the agreement, Family Dollar would be barred from misrepresenting its prices. It would also have to create a pricing-accuracy program that includes regular monitoring, employee training and prompt correction of errors. An independent party would assess and certify the program once a year.
- The consumer fund would be used for eligible customers.
- Notices about the fund would appear in stores, on the company’s website and in its mobile app.
- The pricing program would be reviewed and certified independently each year.
The states that participated were Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah, Wisconsin and Ohio. The agreement addresses allegations only; the regulators’ claims were not described as a court finding of wrongdoing in the announcement.
