COLUMBUS, Ohio (AVC News) — Ohio Attorney General Andy Wilson and 16 other state attorneys general have joined the Federal Trade Commission in securing a $63 million settlement with Family Dollar over allegations the retailer repeatedly charged customers more at checkout than advertised prices.
The complaint alleges thousands of Family Dollar stores nationwide continued overcharging customers despite previous enforcement actions and consumer complaints. The alleged price differences involved shelf tags, advertisements, the company’s website and its mobile app.
The settlement marks the second time Ohio has taken legal action against Family Dollar over pricing practices. In November 2022, the state sued the retailer following complaints about customers being charged more than prices displayed on store shelves. That case resulted in a $250,000 settlement in 2023, which required the company to take steps to correct pricing discrepancies and provide food to Ohio food pantries.
Under the new settlement, Family Dollar must establish a $40 million fund to compensate eligible customers and notify them through notices in stores, on its website and through its mobile app. The company will also create a $20 million customer discount program and pay more than $3 million to participating states. Ohio is expected to receive more than $300,000.
The agreement also prohibits future price misrepresentations and requires Family Dollar to establish a pricing accuracy program that includes regular monitoring, employee training and prompt correction of errors. The program must be independently assessed and certified each year.
The settlement is pending approval by a judge. The FTC and states allege the company’s practices violated federal and state consumer protection laws, including the Ohio Consumer Sales Practices Act.
