FTC and 17 States Secure $63 Million Settlement with Family Dollar Stores in Price Transparency Win for Consumers

Family Dollar will pay $63 million to settle Federal Trade Commission and state allegations that the company routinely charged customers more at the register than the prices displayed on shelves, price tags and advertisements, costing consumers millions of dollars.

The proposed order prohibits Family Dollar from misrepresenting the price of its goods or services and requires the retailer to establish and implement a pricing accuracy program that is independently assessed and annually certified.

"The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices," said Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection. "Today's order will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices."

According to the complaint, thousands of Family Dollar stores nationwide have overcharged shoppers, including in low-income communities with limited access to full-service grocery stores, while failing to correct the issue despite being warned about the problem.

The complaint also alleges that consumers from across the country have consistently reported widespread pricing discrepancies, and regulatory inspections have confirmed that price labels are inaccurate in stores across the nation, with Family Dollar frequently charging higher prices at the register. In the last five years, state and local regulators have cited Family Dollar for thousands of pricing violations, resulting in fines exceeding $3 million. In the last three years, Family Dollar has entered into multiple settlements with state Attorneys General and consumer protection agencies, paying over $800,000 in penalties for inaccurate pricing.

Family Dollar also allegedly charged more at the register than the prices listed on its website and mobile app. Consumers regularly reported that they did not receive the discounted prices shown on Family Dollar's Smart Coupons, because the mobile application did not work and prevented customers from accessing and redeeming the coupons at the register. Family Dollar's internal records show that consumers have complained to the company for the last six years about the same problems with the mobile app failing to provide the promised discounts or prices.

The complaint also alleges that Family Dollar failed to correct its deceptive pricing practices and continued to make false pricing statements, despite thousands of failed inspections, hundreds of consumer complaints and multiple enforcement actions.

In a related complaint filed on October 26, 2026, the FTC and state partners sued Dollar General Corporation for similar deceptive pricing accuracy practices, overcharging consumers and failing to correct the issue despite being warned about the problem. The FTC's litigation against Dollar General is ongoing.

Under the proposed order, Family Dollar will be required to establish a $40 million consumer redress fund payable to eligible consumers and a $20 million discount program for Family Dollar customers. Payments exceeding $3 million will also be made to the states. Family Dollar must notify customers of their redress fund eligibility by clearly posting notices in its stores and on its digital platforms. In addition, it must establish a pricing accuracy program aimed at ensuring that Family Dollar regularly monitors and verifies its prices, trains employees to identify pricing discrepancies and promptly corrects errors to ensure customers are charged the prices advertised or displayed.

The Commission vote authorizing the staff to file the complaint and stipulated final order was 2-0. The FTC filed the complaint and stipulated final order in the U.S. District Court for the Eastern District of Virginia.

NOTE: The Commission files a complaint when it has "reason to believe" that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated final orders have the force of law when approved and signed by the District Court judge.