(COLUMBUS, Ohio) — Together with the Federal Trade Commission, Ohio Attorney General Andy Wilson and 16 other state attorneys general have secured a $63 million settlement with Family Dollar to resolve allegations that the company has persisted in charging customers more at their registers than the prices displayed on shelves and tags and in advertisements.
“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.”
The pending settlement marks the second time in recent years that the Ohio Attorney General’s Office (AGO) has taken legal action against Family Dollar. In November 2022, the state sued the retailer after numerous consumers complained that its stores often advertised one price on their shelves but charged a higher price at checkout.
In 2023, the AGO reached a $250,000 settlement with Family Dollar requiring specific steps to address the pricing discrepancies. The settlement also mandated that the company provide food to local food pantries throughout Ohio.
Despite this legal action, the overcharges persisted, prompting the attorneys general to join the FTC's enforcement action.
The current complaint alleges that thousands of Family Dollar stores nationwide continued to overcharge shoppers despite multiple enforcement actions and ongoing consumer complaints. It also alleges that Family Dollar charged customers more at registers than prices listed on its website and mobile app.
Under the settlement, Family Dollar will be required to:
- Establish a $40 million consumer redress fund to compensate eligible customers and notify those customers about the fund by posting notices in its stores and on its website and app. The notice to eligible consumers will be linked at www.familydollar.com within 14 days of the order being signed by the judge.
- Create a $20 million discount program for Family Dollar customers.
- Pay more than $3 million to the participating states, of which Ohio will receive over $300,000.
- Prohibit future misrepresentations of prices.
- Establish a pricing accuracy program that includes regular price monitoring, employee training and prompt correction of errors.
- Have this program independently assessed and certified annually.
The FTC and states allege that Family Dollar's practices violated the FTC Act and applicable state consumer protection laws, including the Ohio Consumer Sales Practices Act.
Joining Ohio and the FTC in the enforcement action are Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin.
MEDIA CONTACT:
Hannah Hundley: 614-909-9113
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