Family Dollar to pay $63 million to settle allegations that it routinely overcharged customers

Family Dollar will pay $63 million to settle state and federal allegations that it routinely charged customers more at the register than the prices displayed on its shelves, website and mobile app.

The Federal Trade Commission and 17 states filed federal charges against the company Thursday and announced the proposed settlement the same day. The settlement must still be approved by a judge.

According to the FTC’s complaint, consumers from across the country have been reporting price discrepancies at Family Dollar for years. In January 2025, for example, consumers from at least seven states reported that Family Dollar refused to honor a “2 for $20” sale on a package of diapers, even though the price was advertised on its mobile app and on shelf tags.

One Michigan consumer took a picture of the “2 for $20” shelf tag and brought it to the register, but reported that the store manager said the price was wrong and quickly removed the shelf tag, the complaint said.

Over the last five years, state and local regulators have cited Family Dollar for thousands of pricing violations, resulting in fines of more than $3 million, the complaint said. It has also entered into multiple settlements with state attorneys general and consumer protection agencies over inaccurate pricing.

Family Dollar said Friday it will work with the FTC and state agencies to meet the settlement’s requirements and provide clear information to customers about how the settlement could impact them.

“We take our responsibility to deliver a positive shopping experience seriously,” Family Dollar spokeswoman Janella Escobar said in a statement. “We remain focused on strengthening pricing accuracy across our stores and maintaining our customers’ trust.”

Family Dollar, which is privately owned and based in Chesapeake, Virginia, has more than 8,000 U.S. discount stores. It reported revenue of $13 billion in its most recent fiscal year, according to a company statement.

The case is similar to one the FTC and 20 states filed last month against Dollar General, a rival bargain chain. That case is ongoing.

Under the proposed settlement, Family Dollar will be required to establish a $40 million consumer redress fund payable to eligible consumers. The company must notify customers about the fund through notices in stores and on its digital platforms.

The settlement requires Family Dollar to establish a $20 million discount program for its customers and pay $3 million to the states involved in the case. Those states are: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin.

The settlement also requires Family Dollar to implement a pricing accuracy program that is independently assessed and annually certified.