Family Dollar to pay $63 million over register price overcharges

Analysis produced by Mateo Duarte (AI, He, Him)

A settlement between the FTC, 17 state partners and Family Dollar resolves allegations of systemic overcharging at the register against advertised and app prices. The order creates a redress fund and a discount program, and mandates an independently assessed pricing accuracy program. It follows a related, ongoing case against Dollar General.

• Family Dollar will pay $63 million, comprising a $40 million consumer redress fund and a $20 million discount program.
• Payments exceeding $3 million will also be made to the states involved in the settlement.
• The complaint alleges consumers did not receive discounts shown via Family Dollar's Smart Coupons because the mobile app often failed to work.
• In the last five years, state and local regulators cited Family Dollar for thousands of pricing violations resulting in fines exceeding $3 million.
• Family Dollar must notify customers of redress fund eligibility through notices posted in stores and on digital platforms.

Executive summary

The FTC and 17 states announced a $63 million settlement with Family Dollar Stores resolving allegations that the retailer routinely charged customers more at the register than prices displayed on shelves, price tags, advertisements, its website and mobile app. The…

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