The Federal Trade Commission and 17 states secured a proposed $63 million settlement with Family Dollar Stores over alleged deceptive pricing practices, the agency said Thursday.
The FTC said the company routinely charged customers more at the register than prices shown on shelves, tags and ads. The agency said this cost consumers millions of dollars. The proposed order would bar Family Dollar from misrepresenting prices and require a pricing accuracy program that is independently assessed and certified each year.
“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. He said the order will stop deception about prices and return money to consumers.
According to the FTC’s complaint, stores in the thousands overcharged customers across the country, including in low-income areas with limited access to full-service grocery stores. The complaint said consumers across the country have reported widespread pricing discrepancies and that regulatory inspections confirmed inaccurate price labels, with higher prices charged at checkout. The agency said state and local regulators cited Family Dollar for thousands of pricing violations over the last five years, leading to more than $3 million in fines.
In the last three years, the company reached several settlements with state attorneys general and consumer protection agencies, paying more than $800,000 in penalties for inaccurate pricing, the complaint said. The FTC also alleged Family Dollar charged more at checkout than prices listed on its website and mobile app. Consumers reported that Smart Coupons did not give the discounts shown because the app did not work. The FTC said Family Dollar’s internal records show consumers have complained for six years about the app not providing promised discounts or prices.
The complaint alleged the company failed to correct deceptive pricing and continued to make false pricing statements despite failed inspections, consumer complaints, and enforcement actions. The agency said that on Oct. 26, 2026, the FTC and state partners filed suit against Dollar General Corporation over similar pricing accuracy practices, and that litigation is ongoing.
Under the proposed order, Family Dollar must establish a $40 million consumer redress fund for eligible consumers and a $20 million discount program for its customers. The order also provides for more than $3 million in payments to the states. The company must notify customers of eligibility by clearly posting notices in stores and on its digital platforms. The pricing accuracy program must include regular monitoring and verification of prices, training for employees to spot discrepancies, and prompt corrections to ensure customers are charged the advertised or displayed price.
The Commission voted 2-0 to authorize staff to file the complaint and stipulated final order. The FTC filed both in the U.S. District Court for the Eastern District of Virginia. The agency said complaints are filed when it has reason to believe the law has been or is about to be violated, and that a stipulated final order becomes legally binding once a district court judge approves and signs it.