COLUMBUS — Ohio Attorney General Andy Wilson, 16 other state attorneys general, and the Federal Trade Commission have secured a $63 million settlement with Family Dollar.
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The agreement resolves allegations that the retailer consistently charged customers more at registers than prices displayed on store shelves, tags, advertisements, and mobile apps.
The multi-state enforcement action follows complaints alleging that thousands of Family Dollar locations nationwide continued to overcharge shoppers despite prior state enforcement efforts.
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Regulators alleged the practices violated the FTC Act and state consumer protection laws, including the Ohio Consumer Sales Practices Act.
The Ohio Attorney General’s Office previously sued Family Dollar in November 2022 after consumers reported pricing discrepancies at checkout.
That legal action resulted in a $250,000 settlement in 2023 requiring operational changes and food donations to Ohio food pantries. Despite that agreement, state officials reported that overcharges continued.
Under the terms of the settlement, Family Dollar will create a $40 million consumer redress fund to compensate eligible shoppers and establish a $20 million discount program.
The retailer must also pay more than $3 million to the participating state governments, with Ohio receiving over $300,000.
The settlement mandates that Family Dollar prohibit future price misrepresentations and implement an internal pricing accuracy program. The program requires regular price monitoring, employee training, prompt error corrections and an independent annual assessment and certification.
Family Dollar will post notifications regarding the consumer redress fund in stores, on its website and within its mobile app.
The retailer will link the consumer notice on www.familydollar.com within 14 days of the judge signing the settlement order.
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