Family Dollar agrees to proposed $63 million pricing settlement

Family Dollar has agreed to a proposed $63 million settlement with the Federal Trade Commission and 17 states over allegations that it charged customers more at checkout than advertised prices. The agreement, filed in federal court in Virginia, still requires a judge’s approval; the company did not admit or deny wrongdoing.

The proposed settlement would provide $40 million for a fund to compensate eligible consumers, establish $20 million in discounts for customers and direct $3 million to the participating states. Customers would be notified about the fund in stores and on the company’s digital platforms.

The proposed order also requires Family Dollar to create a pricing-accuracy program, with independent assessment and annual certification. The program is intended to monitor prices and address discrepancies, according to the settlement terms.

The FTC complaint alleges that consumers reported price differences over several years and that state and local regulators cited the company for thousands of pricing violations during the past five years, resulting in fines exceeding $3 million. Those allegations have not been established as findings of liability in the settlement.