Key facts
- Family Dollar will pay $63 million to settle FTC and state allegations of register overcharges.
- The proposed order sets a $40 million consumer redress fund and a $20 million discount program.
- Family Dollar must pay more than $3 million to the states under the proposed order.
- The order requires an independently assessed pricing accuracy program with annual certification.
- The FTC voted 2-0 to authorize filing the complaint and stipulated final order.
- The FTC sued Dollar General on October 26, 2026, over similar pricing practices; that case is ongoing.
Family Dollar agreed to pay $63 million to settle allegations by the Federal Trade Commission and 17 states that it routinely charged customers more at the register than the prices displayed on shelves, price tags and advertisements, the FTC said on November 13, 2026. The complaint, filed in the U.S. District Court for the Eastern District of Virginia, alleged the practice cost consumers millions of dollars and dated to 2023.
The proposed order prohibits Family Dollar from misrepresenting the price of its goods or services and requires the retailer to establish a pricing accuracy program that is independently assessed and annually certified. It also requires a $40 million consumer redress fund payable to eligible consumers, a $20 million discount program for Family Dollar customers, and payments exceeding $3 million to the states. Family Dollar must notify customers of their redress fund eligibility by posting notices in its stores and on its digital platforms.
According to the complaint, thousands of Family Dollar stores nationwide overcharged shoppers, including in low-income communities with limited access to full-service grocery stores, and the company failed to correct the issue despite warnings. The complaint alleged consumers did not receive discounted prices shown in Family Dollar's Smart Coupons because the mobile application did not work, and that internal records show complaints about the app over six years. State and local regulators cited Family Dollar for thousands of pricing violations in the last five years, resulting in fines exceeding $3 million, and the company paid over $800,000 in penalties across multiple state settlements in the last three years, according to the complaint.
Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection, said: "The FTC is committed to ensuring price transparency and fairness so consumers can make informed choices." He added that the order "will ensure Family Dollar stops deceiving consumers about its prices and returns money to consumers harmed by these practices."
The FTC and state partners filed a related complaint against Dollar General Corporation on October 26, 2026, alleging similar deceptive pricing practices. The FTC's litigation against Dollar General is ongoing. The Commission vote authorizing staff to file the complaint and stipulated final order was 2-0.