Utah, FTC secure $63 million settlement over Family Dollar register prices 

SALT LAKE CITY, Utah — Utah, the Federal Trade Commission, and 16 other states have secured a $63 million settlement with Family Dollar Stores, LLC to resolve allegations that the company routinely charged customers more at the register than the prices on its shelves, price tags, and advertisements. The states and the FTC filed the complaint and proposed order on November 12th in the Eastern District of Virginia. The Utah Attorney General’s Office represented the Utah Department of Commerce’s Division of Consumer Protection in the case. 

“When money is tight, every dollar matters. Utah families shouldn’t have to worry that the price at checkout will be higher than the price they saw on the shelf. This settlement puts money back in consumers’ pockets and helps ensure shoppers get the prices they were promised,” said Utah Attorney General Derek Brown. 

“Shoppers deserve to trust that the price they see on the shelf or in an advertisement is the price they pay at checkout,” said Margaret Woolley Busse, Utah Department of Commerce Commissioner. “We are proud to return money to customers who were deceived, and we are holding Family Dollar accountable to ensure that pricing integrity and transparency are priorities in their retail practices.”  

According to the complaint, thousands of Family Dollar stores nationwide have overcharged shoppers. The complaint alleges that Family Dollar charged more at the register than the prices listed on the shelf, its mailers, its website, and its mobile app. The complaint also alleges the company failed to fix the problem despite thousands of failed inspections, hundreds of consumer complaints, and multiple enforcement actions. 

Under the proposed order, Family Dollar would: 

• Pay $40 million into a fund to repay eligible customers 
• Fund a $20 million discount program for its customers 
• Pay more than $3 million to the states 
• Post notices in its stores and on its website and app telling customers they may be eligible for a payment 
• Stop misrepresenting the prices of its goods and services 
• Set up a pricing accuracy program that regularly checks its prices, trains employees to spot pricing errors, and corrects errors promptly. An independent assessor would review the program, and the company would certify it every year. 

The other states that brought the case are Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Wisconsin.