Family Dollar to Pay $63 Million Over Prices That Didn’t Match at Checkout

COLUMBUS, Ohio — Family Dollar has agreed to a $63 million settlement over claims that its stores kept charging customers more at the register than the prices shown on shelves, tags and ads. Ohio Attorney General Andy Wilson announced the deal. His office worked with the Federal Trade Commission and attorneys general from 16 other states. “Families are already paying enough for everyday essentials,” Wilson said. “Retailers shouldn’t be padding their profits by charging customers more than the prices they advertise. I’m proud to join our partners in holding Family Dollar accountable in making sure consumers aren’t being cheated.” Not the First Time Ohio Has Taken Action This is the second time in recent years that the Ohio Attorney General’s Office has gone after the retailer. In November 2022, the state sued Family Dollar after many shoppers complained. They said stores often posted one price on the shelf but charged a higher one at checkout. A $250,000 settlement followed in 2023. The company had to take specific steps to fix its pricing problems. It also had to donate food to local food pantries across Ohio. The overcharges kept happening anyway. That led the attorneys general to join the FTC’s enforcement action. What the New Complaint Says The complaint says thousands of Family Dollar stores across the country kept overcharging shoppers. This happened even after several enforcement actions and steady consumer complaints. It also says the company charged more at the register than the prices listed on its website and mobile app. According to the FTC and the states, these practices broke the FTC Act and state consumer protection laws. In Ohio, that includes the Ohio Consumer Sales Practices Act. What Family Dollar Must Do Under the pending settlement, the company must: Set up a $40 million fund to repay eligible customers. Notices will be posted in stores, on the website and in the app. Post a link to the customer notice at familydollar.com within 14 days of a judge signing the order. Create a $20 million discount program for customers. Pay more than $3 million to the states involved. Ohio will get over $300,000. Stop misrepresenting prices. Start a pricing accuracy program with regular price checks, employee training and quick fixes for errors. Have that program reviewed and certified by an independent party every year. States Taking Part Ohio and the FTC are joined by Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin. Shoppers who think they may qualify for a refund should watch for the notice at familydollar.com once the judge signs the order.