The Family Dollar chain has agreed to a $63 million settlement with the Federal Trade Commission (FTC) and 17 states, including Florida. The case concerns allegations that customers were charged more at the register than the prices shown on shelves, price tags and in advertising.
The complaint and proposed settlement were filed Thursday, Nov. 12, in federal court in Norfolk, Virginia. The settlement still requires a judge’s approval. According to the plaintiffs, the overcharging allegedly occurred in thousands of stores across the country, including in lower-income areas with limited access to full-service supermarkets.
The documents show the chain will create a $40 million refund fund for eligible customers. It will also launch a $20 million discount program. According to CBS News, customers will receive 15% off select items for two days. The states will receive a combined total of more than $3 million.
The states are Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Nebraska, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah and Wisconsin.
According to CBS News, customers who made a purchase at a Family Dollar store between Jan. 1, 2023, and Oct. 1, 2026, are eligible for refunds. The chain is to announce the terms through clearly visible notices in its stores and on its digital channels, among other means. Details of the payouts are not yet known, so it is worth watching for announcements in stores and on the company’s website.
The settlement also bars the company from misleading customers about prices and requires it to implement a price integrity program that will be independently assessed and certified annually. According to the FTC, over the past five years local and state authorities have fined the chain for thousands of pricing violations, totaling more than $3 million.
Family Dollar, based in Chesapeake, Virginia, neither admitted nor denied wrongdoing. The company said Friday that it will work with the FTC and state agencies to carry out the terms of the settlement and that it is focused on improving price accuracy in its stores.
Source: Local 10
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