Family Dollar has agreed to pay $63 million to settle claims that it charged shoppers more at the register than the prices shown on shelves, tags and advertisements, according to the Federal Trade Commission.
The settlement was filed November 12 in federal court in Virginia, the FTC says.
Allegations and company response
The FTC and 17 states allege that thousands of Family Dollar stores overcharged shoppers, including in low-income communities, and that the company did not fix the problem despite warnings. Family Dollar neither admits nor denies the allegations.
Proposed settlement terms
Under the proposed order, Family Dollar must create a $40 million fund to refund shoppers who made purchases between January 1, 2023, and October 1, 2026.
The company must also run a $20 million program that cuts prices by 15% for two days and pay more than $3 million to the states.
The complaint cites failed price inspections in Utah and New Mexico, plus years of complaints that the Smart Coupons app did not deliver advertised discounts.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said: “The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices. Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices.”
Claims will open only after a judge approves the order. Shoppers will then have 180 days to submit a claim.
