Family Dollar to pay $63M after FTC says it overcharged customers
The discount retailer failed to honor prices displayed on store shelves, on price tags and in ads, the FTC and multiple states alleged.
Family Dollar has reached a settlement agreement with the Federal Trade Commission and 17 U.S. states to pay $63 million in response to allegations of routinely overcharging customers. The retailer was accused of failing to accurately display prices on store shelves, price tags, and advertisements, causing customers to pay higher prices than indicated.
The proposed settlement mandates Family Dollar to establish a pricing accuracy program that undergoes annual assessment and certification. The order requires the company to create a $40 million fund to reimburse eligible customers, who made purchases between January 1, 2023, and October 1, 2026, and a $20 million discount program for all affected consumers.
State plaintiffs will receive $3 million to be distributed among them. Family Dollar, operating over 7,000 stores across 48 U.S. states and Washington, D.C., did not immediately respond to a request for comment. The FTC and affected states alleged that pricing inaccuracies were widespread and that Family Dollar failed to correct these errors, with customers often being charged higher prices at the register than those displayed.
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