Family Dollar has agreed to pay $63 million to settle allegations from the Federal Trade Commission and 17 states that it routinely charged customers more at the register than the prices displayed on shelves, its website, or its mobile app. The proposed settlement, announced Thursday, still requires a judge's approval.
According to the FTC's complaint, consumers nationwide have reported price discrepancies at Family Dollar for years. The complaint cited an instance in January 2025 where consumers in at least seven states reported that the retailer refused to honor a "2 for $20" sale on diapers, despite the advertised price on shelf tags and the company's mobile app. In one case, a Michigan consumer presented a photo of the shelf tag to a store manager, who reportedly stated the price was incorrect and removed the tag.
Over the past five years, Family Dollar has faced thousands of pricing violations cited by state and local regulators, resulting in fines exceeding $3 million. The company has also entered into multiple previous settlements with state attorneys general and consumer protection agencies regarding inaccurate pricing.
In response to the allegations, Family Dollar spokeswoman Janella Escobar stated, "We take our responsibility to deliver a positive shopping experience seriously. We remain focused on strengthening pricing accuracy across our stores and maintaining our customers’ trust." The company said it will work with the FTC and state agencies to meet the settlement's requirements and inform customers about its impact.
Under the terms of the proposed settlement, Family Dollar must establish a $40 million consumer redress fund for eligible customers, who will be notified through in-store and digital platform notices. An additional $20 million will be allocated to a customer discount program, and $3 million will be paid to the participating states: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah, and Wisconsin.
The settlement also mandates that Family Dollar implement a pricing accuracy program that undergoes independent assessment and annual certification.
Family Dollar, a privately owned company based in Chesapeake, Virginia, operates over 8,000 U.S. discount stores and reported $13 billion in revenue in its most recent fiscal year. The FTC and 20 states filed a similar, ongoing case against rival chain Dollar General last month.