Family Dollar reaches $63 million settlement with FTC and states over customer overcharges
DLTR•Family Dollar reached a $63 million settlement with the FTC and 17 states over allegations it overcharged shoppers. It will provide $40 million in restitution, $20 million in future discounts and pay $3 million to the states.
1. Settlement terms
Family Dollar reached a $63 million settlement with the US Federal Trade Commission and 17 states over allegations that it overcharged shoppers, including by charging more at the register than it advertised on its website and mobile app. Under settlement papers filed in federal court in Norfolk, Virginia, the retailer will offer $40 million in restitution and $20 million in future discounts to eligible shoppers, and pay $3 million to the states.
2. Allegations and response
The FTC and states accused Family Dollar of violating federal and state laws against deceptive practices and of causing financial harm to consumers. Family Dollar did not admit or deny wrongdoing in agreeing to settle. The company has more than 8,000 stores.
