Family Dollar will pay $63 million to settle state and federal allegations that it routinely charged customers higher prices at checkout than the prices displayed on its shelves, website and mobile app. The Federal Trade Commission and 17 states filed federal charges against the company on Thursday and announced the proposed settlement the same day, the AP reports. The settlement will require approval from a judge. According to the FTC complaint, consumers across the country have been reporting price discrepancies at Family Dollar for years. Over the past five years, state and local regulators have cited the chain for thousands of pricing violations, resulting in fines of more than $3 million, according to the complaint.
- An example: In January 2025, for example, consumers in at least seven states reported that Family Dollar refused to honor a “2 for $20” sale on a pack of diapers, even though the price was advertised on its mobile app and on shelf labels. A Michigan consumer took a photo of the “2 for $20” label and took it to the register, but reported that the store manager said the price was wrong and quickly removed the label, according to the complaint.
- Provisions: The settlement would require the company to establish a $40 million consumer redress fund payable to eligible consumers and to notify customers of this fund through notices in stores and on its digital platforms. Family Dollar is expected to implement a $20 million rebate program for its customers and pay $3 million to the states involved in the case. These states are: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin. And the company should implement an independently evaluated and certified pricing accuracy program annually.
- Company response: Family Dollar said it will work with the FTC and state agencies to meet the requirements of the settlement and provide clear information to customers about how the settlement could impact them.
The case is similar to one filed by the FTC and 20 states last month against Dollar General, a rival chain.
Gn bussni
