Family Dollar to pay $63 million to settle allegations it regularly overcharged customers | Local

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 settlement still needs to be approved by a judge.

According to the FTC complaint, consumers across the country have been reporting price discrepancies at Family Dollar for years. 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.

Over the past five years, state and local regulators have cited Family Dollar for thousands of pricing violations, resulting in fines of more than $3 million, the complaint says. He also reached several settlements with state attorneys general and consumer protection agencies regarding inaccurate pricing.

Family Dollar said Friday it will work with the FTC and state agencies to meet the settlement’s requirements and provide clear information to customers about how the settlement could affect them.

“We take our responsibility to provide a positive shopping experience seriously,” Family Dollar spokeswoman Janella Escobar said in a statement. “We remain focused on strengthening pricing accuracy in our stores and maintaining the trust of our customers. »

Family Dollar, a privately held company based in Chesapeake, Virginia, has more than 8,000 discount stores in the United States. It reported revenue of $13 billion in its most recent fiscal year, according to a company statement.

The case is similar to one filed by the FTC and 20 states last month against Dollar General, a rival trading chain. This matter is ongoing.

As part of the proposed settlement, Family Dollar will be required to establish a $40 million consumer redress fund payable to eligible consumers. The company must inform customers of the fund’s existence through in-store notices and on its digital platforms.

The settlement requires Family Dollar to establish 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.

The settlement also requires Family Dollar to implement a pricing accuracy program that is independently evaluated and certified annually.

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