Family Dollar Stores has agreed to pay $63m, settling allegations by the US Federal Trade Commission (FTC) and 17 states over checkout charges exceeding advertised prices.
Under the terms of a proposed stipulated final order submitted to the US District Court for the Eastern District of Virginia, the retailer will allocate $40m to a consumer redress fund, establish a $20m customer discount programme, and pay more than $3m directly to the participating states.
The settlement bars the company from misrepresenting prices on goods and services an independently assessed, annually certified pricing accuracy programme.
This initiative must incorporate regular price monitoring, staff training to detect discrepancies, and procedures for prompt error correction.
Family Dollar must also inform eligible customers by displaying redress notices across its physical stores and online services.
According to the complaint, pricing mismatches occurred across thousands of stores nationwide, including within low-income communities possessing limited access to full-service grocers.
Regulatory inspections repeatedly identified incorrect shelf tags.
Furthermore, internal records showed shoppers had submitted complaints over a six-year period concerning mobile application failures that prevented them from redeeming advertised “Smart Coupons” at the till.
The agreement follows prior enforcement against the discount chain.
Over the preceding five years, state and local authorities issued thousands of pricing violations against Family Dollar, resulting in more than $3m in fines.
Across the past three years, the business also entered multiple settlements with state Attorneys General and consumer protection organisations, incurring over $800,000 in penalties for pricing inaccuracies.
The regulatory action forms part of wider scrutiny regarding price transparency across the discount retail sector.
FTC consumer protection bureau director Christopher Mufarrige said: “The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices.
"Today’s order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices.”
Retail Insight Network has contacted Family Dollar for comments.
In a related case initiated in late October, the FTC and state partners filed suit against Dollar General over comparable shelf-to-register disparities, an action that remains ongoing.
