HARRISBURG – Attorney General Dave Sunday, along with the Federal Trade Commission and 16 other states, secured a $63 million national settlement with Family Dollar Stores to resolve allegations that the company routinely charged customers more at the register than the prices displayed on shelves, price tags, and advertisements.
In a proposed order filed by Pennsylvania and the partners, Family Dollar will be prohibited from misrepresenting the price of its goods and services. The company must also establish and implement a pricing accuracy program that is independently assessed and annually certified.
“Communities, especially those in low-income areas, rely on stores like Family Dollar for essential items, and deserve honesty in pricing. These allegations show a troubling disregard for customers,” Attorney General Sunday said. “If accepted, this order will provide meaningful relief to families affected by Family Dollar’s pricing practices.”
According to the complaint, thousands of Family Dollar stores nationwide have overcharged shoppers while failing to correct the issue despite thousands of failed inspections, hundreds of consumer complaints, and multiple enforcement actions.
Consumers across the county have consistently reported widespread pricing discrepancies, and regulatory inspections confirmed inaccurate price labels in stores nationwide. The complaint also alleges that Family Dollar charged customers more at the register than as labeled and on its website and mobile app.
Under the proposed order, Family Dollar will be required to establish a $40 million consumer redress fund, payable to eligible consumers, and a $20 million discount program for Family Dollar consumers. Total payments to the states exceeds $3 million.
Family Dollar must notify customers of their redress fund eligibility by clearly posting notices in its stores and on its digital platforms.
The company also must establish a pricing accuracy program requiring it to regularly monitor and verify prices, train employees to identify discrepancies, and promptly correct errors to ensure customers are charged the prices advertised or displayed.
In addition to Pennsylvania and the FTC, the enforcement action against Family Dollar also included: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Utah and Wisconsin.
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