Family Dollar to pay $63m to settle overcharging allegations

Family Dollar has agreed to pay $63m to settle allegations by the Federal Trade Commission (FTC) and 17 states that it repeatedly charged customers more at checkout than prices shown on shelves. The case follows an investigation that found frequent pricing discrepancies at Family Dollar and its rival Dollar General, and raises concerns about the impact on shoppers who rely on clear prices to manage tight budgets.

The settlement includes a $40m fund for consumer redress, $20m in customer discounts and more than $3m for state authorities. Family Dollar must also monitor and verify prices regularly, train staff to spot pricing problems and correct overcharges promptly. The company neither admitted nor denied the allegations; an FTC investigator reported being overcharged on 15 of 50 items bought at one Ohio store.