Family Dollar Agrees To Pay $63,000,000 In FTC Settlement, Including $40,000,000 In Refunds For Shoppers Allegedly Overcharged At the Register

Family Dollar has agreed to pay tens of millions of dollars to settle claims that it charged shoppers more at the register than the prices shown on shelves, tags and ads.

The $63 million settlement was filed November 12th in federal court in Virginia, says the Federal Trade Commission.

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.

Under the proposed order, the company must create a $40 million fund to refund shoppers who made purchases between January 1st, 2023 and October 1st, 2026.

Family Dollar 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.

Says Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection,

“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 open only after a judge approves the order, and shoppers will then have 180 days to submit one.