Nebraska Joins FTC and 16 States in Securing $63 Million Settlement with Family Dollar Stores in Price Transparency Win for Consumers

Family Dollar Stores agreed to a $63 million settlement with Nebraska, the Federal Trade Commission, and 16 other states to resolve allegations that the company routinely charged customers more at checkout than the prices advertised on shelves, price tags, and advertisements.

The complaint alleges widespread pricing discrepancies at Family Dollar stores nationwide, despite repeated failed inspections, consumer complaints, and enforcement actions.

Under the proposed settlement, Family Dollar is prohibited from misrepresenting prices and must implement an independently assessed pricing accuracy program to monitor prices, train employees, and promptly correct errors.

The settlement includes a $40 million consumer redress fund, a $20 million customer discount program and more than $3 million in payments to participating states. Family Dollar must also notify eligible customers about the redress fund through its stores and online channels.

In addition to Nebraska and the FTC, the enforcement action against Family Dollar also included: Alabama, Arkansas, Colorado, Florida, Illinois, Iowa, Kansas, Louisiana, Mississippi, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Utah, and Wisconsin.