FTC and 17 States Secure $63 Million Settlement with Family Dollar Stores in Price Transparency Win for Consumers

What happened

The proposed order prohibits Family Dollar from misrepresenting the price of its goods or services and requires the retailer to establish and implement a pricing accuracy program that is independently assessed and annually certified. According to the complaint , thousands of Family Dollar stores nationwide have overcharged shoppers, including in low-income communities with limited access to full-service grocery stores, while failing to correct the issue despite being warned about the problem.

The complaint also alleges that consumers from across the country have consistently reported widespread pricing discrepancies, and regulatory inspections have confirmed that price labels are inaccurate in stores across the nation, with Family Dollar frequently charging higher prices at the register. Consumers regularly reported that they did not receive the discounted prices shown on Family Dollar’s Smart Coupons, because the mobile application did not work and prevented customers from accessing and redeeming the coupons at the register.

“The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices.”

In the last five years, state and local regulators have cited Family Dollar for thousands of pricing violations, resulting in fines exceeding $3 million. In the last three years, Family Dollar has entered into multiple settlements with state Attorneys General and consumer protection agencies, paying over $800,000 in penalties for inaccurate pricing.

Family Dollar also allegedly charged more at the register than the prices listed on its website and mobile app.