Ohio AG: Family Dollar settles deceptive pricing allegations for $63 million

Ohio Attorney General Andy Wilson, 16 other state attorneys general and the Federal Trade Commission, or FTC, have secured a $63 million settlement with Family Dollar to resolve allegations that the company charged customers more at the register than the prices displayed on shelves and tags and in advertisements. The Attorney General's Office had sued the retailer in 2022 after consumers complained that stores often advertised one price on their shelves then charged a higher price at checkout. That resulted in a $250,000 settlement and forced corporate donations to local food pantries. "Despite this legal action, the overcharges persisted," the Attorney General said in a news release, with thousands of Family Dollar stores nationwide continuing to overcharge customers despite complaints and legal action. Under the settlement, Family Dollar has to create a $40 million consumer fund to compensate customers, with notices on how to apply for compensation posted in stores, online and the company's mobile app. It also has to create a $20 million discount program for customers and pay more than $3 million to the participating states, with Ohio receiving more than $300,000. Lastly, the company has to prohibit future misrepresentations of prices, establish a pricing accuracy program that includes regular price monitoring, employee training and prompt correction of errors, and have the program independently assessed and certified annually. In the last five years, state and local regulators have cited Family Dollar for thousands of pricing violations, resulting in fines exceeding $3 million and more than $800,000 in penalties for inaccurate pricing over the last three years, the FTC said in its news release. "Family Dollar prides itself on providing convenient, close-to-home stores where customers can shop for everyday essentials at affordable prices," the company said in a statement to The Guardian, which had conducted an investigation into the company's alleged deceptive pricing. "We take our responsibility to deliver a positive shopping experience seriously. We remain focused on strengthening pricing accuracy across our stores and maintaining our customers' trust."