Utah, the Federal Trade Commission, and 16 other states have secured a $63 million settlement with Family Dollar Stores, LLC to resolve allegations regarding pricing discrepancies. The settlement addresses claims that the company routinely charged customers more at the register than the prices displayed on its shelves, price tags, and advertisements.
The complaint and proposed order were filed Nov. 12 in the Eastern District of Virginia. The Utah Attorney General’s Office represented the Utah Department of Commerce’s Division of Consumer Protection in the legal action.
According to the complaint, thousands of Family Dollar stores nationwide have overcharged shoppers by charging more at the register than the prices listed on shelves, mailers, the company website, and its mobile app. The complaint alleges the company failed to resolve these issues despite hundreds of consumer complaints, thousands of failed inspections, and multiple enforcement actions.
Under the terms of the proposed order, Family Dollar is expected to pay $40 million into a fund to repay eligible customers and provide a $20 million discount program for customers. The company will also pay more than $3 million to the states.
Additional requirements include posting notices in stores, on the company website, and via its app to inform customers of potential eligibility for payments. Family Dollar must also stop misrepresenting the prices of its goods and services and implement a pricing accuracy program. This program will include regular price checks, employee training, and annual certification reviewed by an independent assessor.
Utah Attorney General Derek Brown stated that the settlement aims to ensure shoppers receive the prices they were promised and puts money back into consumers' pockets. Margaret Woolley Busse, Utah Department of Commerce Commissioner, said the settlement holds Family Dollar accountable to ensure pricing transparency and integrity.
The other states involved in the case include Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Wisconsin.
The proposed order seeks to ensure that shoppers can trust that the prices seen on shelves or in advertisements match the prices paid at checkout.
