Family Dollar would pay $63M in proposed settlement for overcharging customers

Family Dollar could pay millions to customers across 16 states, including Wisconsin, over allegations they overcharged customers at the checkout counter.

The Details

Thousands of Family Dollar stores were accused of regularly charging customers more than what was listed on store shelves, in advertising or on price tags, according to the original complaint.

The Federal Trade Commission, Wisconsin and 15 other states took the company to court over those claims. They say if the proposed $63 million settlement is approved, the company will have to pay back affected customers and state governments.

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The settlement would also stop Family Dollar from misrepresenting prices on shelves, according to a statement from the Wisconsin Department of Justice. The company would also need to create a price accuracy program that is independently checked and certified each year.

“It’s not acceptable for a company to indicate that one price will be charged and, at the same time, charge a different price,” said Wisconsin Attorney General Josh Kaul in a statement.

As part of the settlement, Family Dollar would have to create a $40 million fund to help repay eligible customers. Signs explaining the funds would be required at Family Dollar stores and on the company’s website, according to the Wisconsin DOJ.

Another requirement would be for the company to start a $20 million discount program for customers. Each of the 16 states will also receive payments.

Hundreds of customers nationwide complained about the price differences, court documents show. The FTC and states in the case claim inaccurate prices went beyond stores — investigators found price differences on the Family Dollar website and mobile app.

The company did nothing about those complaints, according to court documents, despite receiving thousands of failed inspections and other formal enforcement actions.

“The prices that are shown to customers must be accurate,” Kaul said.

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