Family Dollar says it will work with FTC to meet settlement requirements

Spokeswoman Janella Escobar says chain focused on pricing accuracy, customer trust

Family Dollar said Friday it will work with the Federal Trade Commission and state agencies to meet the requirements of the proposed $63 million settlement over allegations that it charged customers more at the register than the prices displayed on its shelves, website and mobile app, 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 is privately owned and based in Chesapeake, Virginia, and has more than 8,000 U.S. discount stores. The company reported revenue of $13 billion in its most recent fiscal year, according to a company statement.

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

Under the proposed deal, Family Dollar would be required to establish a $40 million consumer redress fund payable to eligible consumers, with customer notices about the fund posted in stores and on the company’s digital platforms. The settlement also 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. Family Dollar must additionally implement a pricing accuracy program that is independently assessed and annually certified.

According to the FTC’s complaint, consumers from across the country have reported price discrepancies at Family Dollar for years. In January 2025, 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.

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

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.